DA hike for Central Govt. Employees from 1st Jan 2021 and DR for Pensioners calculation

AICPIN-IW for January 2021 has been released by Labour ministry on 26.02.2021. So, the DA / DR calculation has also been updated till January 2021, which is shown below in the table for 7th CPC and 6th CPC pay scale employees.

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

  1. Calculation of DA / DR hike from 1st Jan 2021 (Jan’21 to Jun’21) for 7th CPC pay scale Central Govt. employees
  2. Calculation of DA / DR hike from 1st Jan 2021 (Jan’21 to Jun’21) for 6th CPC pay scale Central Govt. employees
  3. DA / DR Govt. Freezing order for central govt. employees and pensioners till June 2021
  4. DA hike for 7th CPCGovt. DPE order since 2017
  5. DA/DR hike for 6th CPCGovt. DPE order since 2015
  6. DA/DR hike for 5th CPC (50% merged case)Govt. DPE order since 2015
  7. DA/DR hike for 5th CPC (50% non-merged case)Govt. DPE order since 2015
  8. DR hike for pensioners of 7th CPC – Govt. DPPW order since 2017

The Dearness allowances and Dearness relief applicable for central Government employees will not be hiked by Govt. of India at present as it is freezed till June 2021. But, till then we are calculating the quantum of DA / DR increase on percentage basis in this post. This same increment of DA / DR will be added with effect from 1st July 2021.

  1. DA for Central Govt. Employees from 1st Jan 2021 will increase by 3 %, from 25 % to 28 % for 7th CPC pay scale.
  2. DA for Central Govt. Employees from 1st Jan 2021 will increase by 7 %, from 182 % to 189 % for 6th CPC pay scale.
DA hike for Central Govt. employees from 1st Jan 2021 for 7th CPC pay scale
DA hike for Central Govt. employees from 1st Jan 2021 for 7th CPC pay scale
DA hike for Central Govt. employees from 1st Jan 2021 for 6th CPC pay scale
DA hike for Central Govt. employees from 1st Jan 2021 for 6th CPC pay scale

Calculation of DA / DR hike from January 2021 and July 2021 for 7th CPC pay scale:

The DA, DR hike from Jan 2021 calculation has been done after declaration of AICPIN-IW of Jan’21 month. The DA will not be hiked by Govt. of India at present as it is freezed till June 2021, but since the DA will be added for this period from 01.01.2020 to 30.06.2021 for July 2021 DA calculation. So, DA calculation is must, as the same number will be used for DA hike calculation.

DA Calculation for 7th CPC pay scale of central govt. employees:

The formula of DA calculation for 7th CPC pay scale for old base year is :

DA = [(Average of AICPI-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. While the hike of DA / DR from 1st Jan 2020, Govt. has already confirmed 4 %.

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 /DR calculated (%)DA hike (%)
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 = 254%
Jun-20 332326.5824.94 
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 Jan 2021

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This DA calculation is for record only so that whenever the DA / DR change will resume, all this DA will be added and implemented since then. Like it can be understood from this table that :

  1. For the period Jul’19 to Dec’19, DA was 17 % from 1st July 2019.
  2. For the period Jan’20 to Jun’20, increment of 4 %, DA will be 21 % from 1st Jan’2020.
  3. For the period Jul’20 to Dec’20, increment is 4 %, making DA 25 % from 1st July 2020.
  4. And, for the period Jan’21 to Jun’21, increment is 3 %, making DA 28 % from 1st Jan’2021.

Similarly, after the declaration of AICPIN of Jan to Jun 2021, DA / DR from 1st July 2021 or for period Jul’21 to Dec’21 will be known to us.

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Calculation of DA / DR hike from January 2021 and July 2021 for 6th CPC pay scale:

The DA will not be hiked by Govt. of India at present as it is freezed till June 2021, but since the DA will be added for this period from 01.01.2020 to 30.06.2021 for July 2021 DA calculation. So, DA calculation is must, as the same number will be used for DA hike calculation.

DA Calculation for 6th CPC pay scale of central govt. employees:

The formula of DA calculation for 6th CPC pay scale for old base year is :

DA = [(Average of AICPI-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 /DR calculated (%)DA hike (%)
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 
DA rate for 6th CPC pay scale from 1st Jan 2021

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This DA calculation is for record only so that whenever the DA / DR change will resume, all this DA will be added and implemented since then. Like it can be understood from this table that :

  1. For the period Jul’19 to Dec’19, DA was 164 % from 1st July 2019.
  2. For the period Jan’20 to Jun’20, increment of 10 %, DA will be 174 % from 1st Jan’2020.
  3. For the period Jul’20 to Dec’20, increment is 8 %, making DA 182 % from 1st July 2020.
  4. And, for the period Jan’21 to Jun’21, increment is 7 %, making DA 189 % from 1st Jan’2021.

Similarly, after the declaration of AICPIN of Jan to Jun 2021, DA / DR from 1st July 2021 or for period Jul’21 to Dec’21 will be known to us.

DA / DR Freezing order for central Govt. employees and central Govt. pensioners till 30th June 2021:

In 23rd April 2020 order, Govt had freezed the Dearness Allowance hike for central govt. employees and Dearness relief hike for central govt. pensioners till 30th June 2021 due to corona or covid-19 pandemic and rolled back the decision taken of hike from 17 % to 21 % for 7th CPC pay scale. So, the DA will remain at 17 % till June 2021 for 7th CPC pay scale.

order of Govt freezing the Dearness Allowance hike for central govt. employees
order of Govt freezing the Dearness Allowance hike for central govt. employees

But they have promised that DA / DR will be restored prospectively and will be subsumed in the cumulative revised rate effective from 1st July 2021. So, it is expected to get a huge increment in DA / DR as this change will occur after 1.5 years.

But, one catch is here that no arrears will be paid for the past one and half years. For example, if DA / DR hike from 1st July 2021 is announced 10% for 7th CPC pay scale, then this hike will be paid in July 2021 salary and onward, but you won’t get any arrears for the last 1.5 years from 01.01.20 to 30.06.21.

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DA increase for central govt. employees and DR increase for central Govt. pensioners from 1st Jan 2020:

The Government of India had already announced 4% increase in dearness allowance (DA) and DR for central government employees and pensioners with effect from 1st Jan, 2020, but later rolled back this decision of DA hike. CDA hike of 7th Pay, 6th Pay, 5th Pay, the data has been shown below since 2015.

In the cabinet meeting held on 13th Mar, 2020, Government had decided to increase the dearness allowance (DA) for 48 lakh employees and 65 lakh pensioners. This hike has been announced only for employees drawing payment in 7th CPC pay scales. For 6th and 5th CPC pay, the hike is yet to be announced.

Before this hike, the dearness allowance (DA) was hiked by 5 % in October 2019 to 17% from 12% with effect from 1st July, 2019. Dearness allowance (DA) change decision comes 2 times a year effective from 1st Jan and 1st July every year only for central government employees and pensioners.

This decision of dearness allowance (DA) change is taken with the formula adopted in the 7th pay commission guidelines. Dearness allowance (DA) is adjustment for the cost of inflation and cost of living. The official letter regarding this is issued by Department of Public Enterprises (DPE) under Ministry of Heavy Industries & Public Enterprises.

Dearness allowance (DA) hike or increment for 7th CPC pay scale with DPE letter:

The DA has been increased to 17% from 12% w.e.f. 1st July 2019 for employees drawing pay in 7th CPC pay scale. These rates are applicable in the case of CDA employees whose pay have been revised with effect from 01.01.2016 as per DPE’S O.M. dated 17.08.2017.

PeriodD. A. (%)Increase / DecreaseLetter by DPE
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 %DPE Notif., 18.10.19
01-01-2019 to 30-06-201912 %3 %DPE Notif., 01.03.19
01-07-2018 to 31-12-20189 %2 %DPE Notif., 10.09.18
01-01-2018 to 30-06-20187 %2 %DPE Notif., 19.03.18
01-07-2017 to 31-12-20175 %1 %DPE Notif., 05.10.17
01-01-2017 to 30-06-20174 %
History of Dearness allowance DA (CDA) hike for central government employees of 7th Pay

Dearness allowance (DA) hike or increment for 6th CPC Pay with DPE letter:

The DA has been increased to 164% from 154% w.e.f. 1st July 2019 for employees drawing pay in 6th CPC pay scale. These rates are applicable in the case of CDA employees whose pay have been revised with effect from 01.01.2006 as per DPE’S O.M. dated 14.10.2008.

PeriodD. A. (%)Increase / DecreaseLetter by DPE
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 %DPE Notif., 29.10.19
01-01-2019 to 30-06-2019154 %6 %DPE Notif., 12.03.19
01-07-2018 to 31-12-2018148 %6 %DPE Notif., 23.10.18
01-01-2018 to 30-06-2018142 %3 %DPE Notif., 04.04.18
01-07-2017 to 31-12-2017139 %3 %DPE Notif., 03.10.17
01-01-2017 to 30-06-2017136 %4 %DPE Notif., 19.04.17
01-07-2016 to 31-12-2016132 %7 %NA
01-01-2016 to 30-06-2016125 %9 %DPE Notif., 21.04.16
01-07-2015 to 31-12-2015116 %
History of Dearness allowance DA (CDA) hike for central government employees of 6th Pay

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Dearness allowance (DA) hike or increment for 5th CPC Pay (if 50% merged) with DPE letter:

The DA has been increased to 312 % from 295 % w.e.f. 1st July 2019 for employees drawing pay in 5th CPC pay scale and for those CPSEs, who have allowed the benefit of merger of 50 % of DA with basic pay as contained in DPE’S O.M. dated 24.05.2005.

PeriodD. A. (%)Increase / DecreaseLetter by DPE
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 %DPE Notif., 29.10.19
01-01-2019 to 30-06-2019295 %11 %DPE Notif., 12.03.19
01-07-2018 to 31-12-2018284 %10 %DPE Notif., 23.10.18
01-01-2018 to 30-06-2018274 %6%DPE Notif., 04.04.18
01-07-2017 to 31-12-2017268 %4 %DPE Notif., 03.10.17
01-01-2017 to 30-06-2017264 %8 %DPE Notif., 19.04.17
01-07-2016 to 31-12-2016256 %11 %DPE Notif., 19.04.17
01-01-2016 to 30-06-2016245 %11 %DPE Notif., 26.04.16
01-07-2015 to 31-12-2015234 %11 %DPE Notif., 14.10.15
01-01-2015 to 30-06-2015223 %
History of Dearness allowance DA (CDA) hike for central government employees of 5th Pay (50 % Merged)

For 5th CPC Pay, if 50% not-merged, history of dearness allowance (DA) change with DPE letter:

The DA has been increased to 362 % from 345 % w.e.f. 1st July 2019 for employees drawing pay in 5th CPC pay scale and for those CPSEs, who have not allowed the benefit of merger of 50 % of DA with basic pay as contained in DPE’S O.M. dated 24.05.2005.

PeriodD. A. (%)Increase / DecreaseLetter by DPE
01-01-2021 to 30-06-2021362 %0 %DA Freezed till 30.06.21
01-07-2020 to 31-12-2020362 %0 %DA Freezed till 30.06.21
01-01-2020 to 30-06-2020362 %0 %DA Freezed till 30.06.21
01-07-2019 to 31-12-2019362 %17 %DPE Notif., 29.10.19
01-01-2019 to 30-06-2019345 %11 %DPE Notif., 12.03.19
01-07-2018 to 31-12-2018334 %10 %DPE Notif., 23.10.18
01-01-2018 to 30-06-2018324 %6 %DPE Notif., 04.04.18
01-07-2017 to 31-12-2017318 %4 %DPE Notif., 03.10.17
01-01-2017 to 30-06-2017314 %8 %DPE Notif., 19.04.17
01-07-2016 to 31-12-2016306 %11 %DPE Notif., 19.04.17
01-01-2016 to 30-06-2016295 %11 %DPE Notif., 26.04.16
01-07-2015 to 31-12-2015284 %11 %DPE Notif., 14.10.15
01-01-2015 to 30-06-2015273 %
History of Dearness allowance DA (CDA) hike for central government employees of 5th Pay (50 % Not-Merged)

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Dearness Relief (DR) for Central Government pensioners / family pensioner hike for 7th CPC pay scale with DPPW letter:

Department of Pension & Pensioners’ Welfare under Ministry of Personnel, Public Grievances & Pensions announces the Dearness Relief two times in a year. Here, the last grant of Dearness Relief to Central Government pensioners / family pensioners, revised rate effective from 01.07.2019 has been issued. After that, from 1st Jan 2020 to 30th June 2021, the hike in DR has been freezed.

These rates of DR will be applicable to the following pensioners:

  1. Civilian Central Government Pensioners / Family Pensioners including Central Govt. absorbee pensioners in PSU / Autonomous Bodies in respect of whom orders have been issued vide this Department’s OM No. 4/34/2002-P&PW(D) Vol II dated 23.06.2017 for restoration of full pension after expiry of commutation period of IS years.
  2. The Armed Forces Pensioners, Civilian Pensioners paid out of the Defence Service Estimates.
  3. All India Service Pensioners.
  4. Railway Pensioners / family pensioners.
  5. Pensioners who are in receipt of provisional pension.
  6. The Burma Civilian pensioners / family pensioners and pensioners / families of displaced Government Pensioners from Burma / Pakistan, in respect of whom orders have been issued vide this Department’s
  7. OM No. 23/3/2008-P&PW(B) dated 11.09.2017.

Past DR hike for Central Government pensioners / family pensioner for 7th CPC pay scale:

Below is the list of past DR hike for Central Government pensioners / family pensioner for 7th CPC pay scale. The official order has been attached under ‘letter by DPPW’.

PeriodD. A. (%)Increase / DecreaseLetter by DPPW
01-01-2021 to 30-06-202117 %0 %DR Freezed till 30.06.21
01-07-2020 to 31-12-202017 %0 %DR Freezed till 30.06.21
01-01-2020 to 30-06-202017 %0 %DR Freezed till 30.06.21
01-07-2019 to 31-12-201917 %5 %DPPW Notif., 21.10.19
01-01-2019 to 30-06-201912 %3 %DPPW Notif., 06.03.19
01-07-2018 to 31-12-20189 %2 %DPPW Notif., 18.09.18
01-01-2018 to 30-06-20187 %2 %DPPW Notif., 22.03.18
01-07-2017 to 31-12-20175 %1 %DPPW Notif., 28.09.17
01-01-2017 to 30-06-20174 %2 %DPPW Notif., 07.04.17
History of Dearness relief DR hike for central government pensioners of 7th CPC Pay scale

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Disclaimer: Kindly check for any clarification from official website.

3 thoughts on “DA hike for Central Govt. Employees from 1st Jan 2021 and DR for Pensioners calculation

  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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