4% DA hike to Central Government Employees from January 2020 confirmed

4% DA hike to Central Government Employees from January 2020 confirmed

4% DA hike to Central Government employees is confirmed as from 1 January 2020

The Consumer Price Index for Industrial Workers, according to a press release issued by the Labor Bureau, increased by 2 points and pegged at 330

Now there is an average of 12 months of AICPIN available for calculating the DA from January 2020.

As per the approved Dearness Allowance rate calculation formula, the DA will be increased by 4 per cent from January 1st, 2020.

Also Read: Consumer Price Index for Industrial Workers (CPI-IW) – December 2019

For impact from 1.1.2020, the DA rate will increase from the current 17 per cent to 21 per cent. For this DA hike the Central Government must grant its approval. In the second week of March 2020, the Union cabinet must approve the plan to increase DA from 1 January 2020

The Ministry of Finance will subsequently issue an order for payment DA to central government employees and DR to pensioners with effect from 1.1.2020

It appears that AICPIN does not have anything to do with the January 2020 rate DA. But it will provide momentum to the July 2020 Expected DA to reach a level that will affect DA indexed Allowances.