DA hike for Central Government employees from 1st July 2021

DA for central government employees has been increased from 17 % to 28 % with effect from 1st July 2021. The DoE has issued the order dated 20th July 2021.

DA hike order for central govt. employees and pensioners from 1st July 2021
DA hike for central govt. employees for 7th Pay

DA hike for CDA pattern employees of CPSEs:

Same DA hike will be applicable for CDA pattern employees of CPSEs of 7th cpc, 6th cpc and 5th cpc, governed by HPPC recommendations. But their official order for DA hike will be issued by the Department of Public Enterprises (DPE) under Ministry of Heavy Industries & Public Enterprises.

DA hike order for CDA based CPSEs from 1st July 2021
DA hike order for CDA based CPSEs from 1st July 2021

Click Here for DA / DR Freezing order for central Govt. employees and pensioners till 30.06.21.

Major Contents in the Post: (Jump to the Section)

  1. DA and HRA hike from 1st July 2021 for 7th CPC central govt. employees.
  2. DA and HRA hike from 1st July 2021 for 6th CPC central govt. employees.
  3. Calculation of DA / DR hike of 7th CPC Central Govt. employees and CDA pattern employees of CPSEs
  4. Calculation of DA / DR hike of 6th CPC Central Govt. employees, central autonomous bodies and CDA pattern employees of CPSEs.
  5. DA / DR Govt. Freezing order for central govt. employees and pensioners till June 2021
  6. DA/DR hike for 7th CPCGovt. DoE circular order since 2017
  7. DA/DR hike for 6th CPCGovt. DoE circular order since 2017
  8. DA/DR hike for 5th CPC Govt. DPE circular order since 2017

DA and Salary hike from 1st July for 7th CPC Central Govt. employees and CDA pattern employees of CPSEs:

DA and Salary hike from 1st July for 6th CPC Central Govt. employees and CDA pattern employees of CPSEs:

From 1st July 2021, DA for Central Govt. Employees of 6th CPC may increase by about 28 to 32 % in comparison to 1st July 2019 (the last DA increment declared). So, the total hike in gross salary of Central Govt. Employees of 6th CPC may be in the range of about 10 to 12% in conservative sense. For example: If your basic pay is Rs. 50,000 per month, then the change in the gross salary of July 2021 over June 2021 will be about ₹19,220.

All other allowances like Transport allowance, Food allowance, Education allowance, Conveyance allowance, Telephone allowance, Newspaper allowance etc. may be constant or increase if linked to basic+DA.

AICPIN based Calculation and formula of DA hike for Central Govt. Employees and CDA based CPSE employees:

AICPIN-IW for May 2021 has been released by Labour ministry on 30.06.2021. So, the DA / DR calculation for Central Government Employees and central autonomous bodies of 7th cpc, 6th cpc and 5th cpc have been updated till May 2021, which is shown below in the table.

DA hike from 1st Jan 2022 for Central Govt. Employees and CDA pattern employees of CPSEs will be known to us after releasing of AICPIN-IW data.

Calculated DA hike for Central Govt. Employees of 7th cpc up to May 2021:

Below is shown the Calculated DA hike calculation for Central Govt. Employees and CDA pattern employees of CPSEs of 7th cpc up to May 2021.

Calculated DA hike for Central Govt. employees for 7th CPC up to May 2021
Calculated DA hike for Central Govt. employees for 7th CPC up to May 2021

Calculated DA hike for central govt. employees of 6th cpc up to May 2021:

Below is shown the Calculated DA hike calculation for central govt. employees, central autonomous bodies and CDA pattern employees of CPSEs of 6th cpc up to May 2021.

Calculated DA hike for Central Govt. employees for 6th CPC up to May 2021
Calculated DA hike for Central Govt. employees for 6th CPC up to May 2021

DA hike for 7th cpc Central government employees declared by DoE:

The DA has been hiked or increased to 28% from 17% w.e.f. 1st July 2021 for central government employees and CDA pattern employees of CPSEs drawing pay in 7th CPC pay scale. This Dearness allowance (DA) hike for 7th cpc central Govt. Employees and CDA pattern employees of CPSEs is declared by DoE, Department of Expenditure under ministry of finance.

Period of DA revisionDA applicable (%) Inc. / Dec.in DA (%) Letter by DoE
01-07-2021 to 31-12-202128 %11 % DoE Notif., 20.07.21
01-01-2021 to 30-06-202117 %0 %DA Freezed till 30.06.21
01-07-2020 to 31-12-202017 %0 %DA Freezed till 30.06.21
01-01-2020 to 30-06-202017 %0 %DA Freezed till 30.06.21
01-07-2019 to 31-12-201917 %5 %DoE Notif., 14.10.19
01-01-2019 to 30-06-201912 %3 %DoE Notif., 27.02.19
01-07-2018 to 31-12-20189 %2 %DoE Notif., 07.09.18
01-01-2018 to 30-06-20187 %2 %DoE Notif., 15.03.18
01-07-2017 to 31-12-20175 %1 %
01-01-2017 to 30-06-20174 %
History of Dearness allowance DA (CDA) hike for central government employees of 7th Pay

DA hike for 6th cpc Central government employees declared by DoE:

The DA has been hiked or increased to 164% from 154% w.e.f. 1st July 2019 for central government employees, central autonomous bodies and CDA pattern employees of CPSEs drawing pay in 6th CPC pay scale. This Dearness allowance (DA) hike for 6th CPC central govt. employees, central autonomous bodies and CDA pattern employees of CPSEs is declared by DoE, Department of Expenditure under ministry of finance.

Period of DA revisionDA applicable (%) Inc. / Dec.in DA (%) Letter by DoE
01-07-2021 to 31-12-2021
01-01-2021 to 30-06-2021164 %0 %DA Freezed till 30.06.21
01-07-2020 to 31-12-2020164 %0 %DA Freezed till 30.06.21
01-01-2020 to 30-06-2020164 %0 %DA Freezed till 30.06.21
01-07-2019 to 31-12-2019164 %10 %DoE Notif., 25.10.19
01-01-2019 to 30-06-2019154 %6 %DoE Notif., 08.03.19
01-07-2018 to 31-12-2018148 %6 %DoE Notif., 11.09.18
01-01-2018 to 30-06-2018142 %3 %DoE Notif., 28.03.18
01-07-2017 to 31-12-2017139 %3 %
01-01-2017 to 30-06-2017136 %4 %
History of Dearness allowance DA (CDA) hike for central government employees of 6th Pay

DA hike for 5th cpc Central government employees declared by DoE:

The DA has been hiked or increased to 312 % from 295 % w.e.f. 1st July 2019 for central government employees, central autonomous bodies and CDA pattern employees of CPSEs drawing pay in pre-revised 5th CPC pay scale. This Dearness allowance (DA) hike for 5th CPC central govt. employees, central autonomous bodies and CDA pattern employees of CPSEs is declared by DoE, Department of Expenditure under ministry of finance.

Period of DA revision DA applicable (%) Inc. / Dec.in DA (%) Letter by DoE
01-07-2021 to 31-12-2021
01-01-2021 to 30-06-2021312 %0 %DA Freezed till 30.06.21
01-07-2020 to 31-12-2020312 %0 %DA Freezed till 30.06.21
01-01-2020 to 30-06-2020312 %0 %DA Freezed till 30.06.21
01-07-2019 to 31-12-2019312 %17 %DoE Notif., 25.10.19
01-01-2019 to 30-06-2019295 %11 %DoE Notif., 08.03.19
01-07-2018 to 31-12-2018284 %10 %DoE Notif., 11.09.18
01-01-2018 to 30-06-2018274 %6%DoE Notif., 28.03.18
01-07-2017 to 31-12-2017268 %4 %
01-01-2017 to 30-06-2017264 %8 %
History of Dearness allowance DA (CDA) hike for central government employees of 5th Pay

DA calculation for central govt. employees of 7th cpc and CDA pattern employees of CPSEs :

The formula of DA calculation for 7th CPC pay scale for old base year is : DA = [(Average of AICPIN-IW for last 12 months) – 261.4] / 261.4 x 100

The linking factor for AICPIN-IW old base year is 2.88 multiplied by AICPIN-IW new base year. So we can calculate the DA / DR hike from 1st July 2020, DA / DR hike from 1st Jan 2021 and finally DA / DR hike from 1st July 2021.

AICPIN-IW (Labour ministry Order)AICPIN-IW points (New base 2016=100)AICPIN-IW points (Old base 2001=100)AICPIN Average of last 12 monthsDA calculated (%)DA hike (%)
June 2021
May 2021120.6347341.4230.61
April 2021120.134634030.07
Mar-21119.6344338.5829.53
Feb-21119343337.0828.95
Jan-21118.2340335.8328.47
Dec-20118.8 342  335 28.16 = 28 3%
Nov-20119.9  345334 27.77  
Oct-20 119.5344 332.58 27.23  
Sep-20118.1340331.0026.63 
Aug-20 338329.5026.05 
Jul-20 336328.0025.48
Jun-20 332326.5824.94 (=25%)4% 
May-20 330325.2524.43 
Apr-20 329323.9223.92 
Mar-20 326322.5023.37 
Feb-20 328321.0822.83 
Jan-20 330319.3322.16 
Dec-19 330317.4221.43 = 214%
Nov-19 328315.0020.50 
Oct-19 325312.8319.68 
Sep-19 322310.9218.94 
Aug-19 320309.1718.27 
Jul-19 319307.5817.67 
Jun-19 316306.0817.094%
DA rate for 7th CPC pay scale from 1st July 2021

DA Calculation for 6th CPC pay scale of central govt. employees, central autonomous bodies and CDA pattern employees of CPSEs:

The formula of DA calculation for 6th CPC pay scale for old base year is : DA = [(Average of AICPIN-IW for last 12 months) – 115.76] / 115.76 x 100.

The linking factor for AICPIN-IW old base year is 2.88 multiplied by AICPIN-IW new base year. So we can calculate the DA / DR hike from 1st July 2020, DA / DR hike from 1st Jan 2021 and finally DA / DR hike from 1st July 2021.

AICPIN-IW (Labour ministry Order)AICPIN-IW points (New base 2016=100)AICPIN-IW points (Old base 2001=100)AICPIN Average of last 12 monthsDA Calculated (%)DA hike (%)
June 2021
May 2021120.6347341.42194.43
April 2021120.1346340193.71
Mar-21 119.6344338.58192.49
Feb-21119343337.08191.19
Jan-21118.2340335.83190.11
Dec-20 118.8342 335 189.39 =1897% 
Nov-20 119.9345 334 188.53  
Oct-20 119.5344 332.58 187.30  
Sep-20118.1340331.00185.94 
Aug-20 338329.50184.64 
Jul-20 336328.00183.34
Jun-20 332326.58182.12 = 182 8%
May-20 330325.25180.97 
Apr-20 329323.92179.82 
Mar-20 326322.50178.59 
Feb-20 328321.08177.37 
Jan-20 330319.33175.86 
Dec-19 330317.42174.20 = 17410%
Nov-19 328315.00172.11 
Oct-19 325312.83170.24 
Sep-19 322310.92168.59 
Aug-19 320309.17167.08 
Jul-19 319307.58165.71 
Jun-19 316306.08164.41 = 164 10%  
DA rate for 6th CPC pay scale from 1st July 2021

HRA hike and TA hike are also linked to DA as per 7th central pay commission:

  1. To know how much HRA (House Rent Allowances) will be hiked when DA increases, Click here.
  2. To know how much TA ( Travelling Allowances) will be hiked when DA increases, Click here.

Disclaimer: Kindly check for any clarification from official website.

3 thoughts on “DA hike for Central Government employees from 1st July 2021

  1. If I remember correctly it is first time that DA has been withheld. So far inspire of so many disasters, 65, 71 war. DA wasn’t held in fact while govt faced crunch the DA arrs used to be credited in to provedent fund and current was paid in cash.
    First time BJP so called Hindu Govt, filled it’s bags by asking public in shadow of Covid to donate new PM cares fund which is not under RTI , accountable to public., whereas PM relief fund already existed and was used for public so far and was under RTI if I am not wrong.
    Col B N Sharma Retired

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