DA Freeze Makes Straight Impact on Salary and HRA of the Central Government Employees
In addition to DA freeze makes straight impact on Salary, it will have a serious impact of the HRA of the Central Govt. employees.
READ ALSO: 7th CPC House Rent Allowance for Central Government Employees
In accordance with 7th CPC recommendations and as approved by the Govt. the HRA rates will be revised from 24% to 27% in “X” cities, and from 16% to 18% in “Y” Cities and 8% to 9% in “Z” cities, if DA rate reaches 25%. At the present inflation trend, we have a very possibility of DA Rate touching 25% from July 2020. So, all Central Government Employees would 1% to 3% lesser HRA for one year from July 2020 to June 2021.
Source: FNPO
Additional DA Freeze (Temporarily Suspended) for Central Govt employees for 18 months between January 2020 and June 2021.
Expected DA from July 2020 and Expected DA from January 2021 – Suspended DA Calculation
The Cabinet Committee already approved to increase 4% additional DA from January 2020 on the basis of Consumer Price Index (CPI). The next installment from July 2020 is expected to increase by 4% additionally. And another installment will also be expected to hike by 4% with effect from 1st January 2021.
The below-expected DA list:
- 1st January 2020 = Additional DA 4% (17% + 4% = 21%)
- 1st July 2020 = Additional DA 4% (Expected) (21% + 4% = 25%)
- 1st January 2021 = Additional DA 4% (Expected) (25% + 4% = 29%)
READ ALSO: Freezing of DA – Loss of DA is Equal to One and Half Month Salary
CHECK ALSO: DA Loss Calculator 2020
READ ALSO: Freezing of Dearness Allowance and Dearness Relief – Finmin Orders 2020
CHECK ALSO: 5th, 6th, 7th Pay DA Chart for Central Government Employees and Pensioners