DA Loss for Central Govt Employees: Freezing of Dearness Allowance from January 2020 to June 2021
Coronavirus COVID 19 Crisis time, the Government of India has decided to freeze the additional installment of Dearness allowance to all Central Government employees including Railways and Armed Forces from January 2020 till July 2021. However, the existing rate of DA (17%) will be paid up to June 2021.
Central Government Employees on freezing of dearness allowance
A simple calculation of the amount of additional Dearness allowance for 18 months from 1.1.2020 to 30.6.2021. After issuing the Finance Ministry order on freezing of Dearness allowance, every employee wants to know the total amount of DA for 18 months.
Estimated Salary Loss due to the Freezing of DA from January 2020 to June 2021.
For example, if an employee’s pay level is 6 and his basic salary is Rs. 49000 and he is working in Delhi.
4% additional DA from January 2020 is already declared by the Govt. and the two more installments of July 2020 and Jan 2021 will be expected to increase by 3% each segment. On this expectation, the calculation of DA and TA are given separate given below:
| Month-Year | Basic Salary |
Current DA 17% | Actual Rise in DA 21% | Loss of DA 4% |
| Jan-2020 | 49000 | 8330 | 10290 | 1960 |
| Feb-2020 | 49000 | 8330 | 10290 | 1960 |
| Mar-2020 | 49000 | 8330 | 10290 | 1960 |
| Apr-2020 | 49000 | 8330 | 10290 | 1960 |
| May-2020 | 49000 | 8330 | 10290 | 1960 |
| Jun-2020 | 49000 | 8330 | 10290 | 1960 |
| Jul-2020 | 50500 | 8585 | 12120 | 3535 |
| Aug-2020 | 50500 | 8585 | 12120 | 3535 |
| Sep-2020 | 50500 | 8585 | 12120 | 3535 |
| Oct-2020 | 50500 | 8585 | 12120 | 3535 |
| Nov-2020 | 50500 | 8585 | 12120 | 3535 |
| Dec-2020 | 50500 | 8585 | 12120 | 3535 |
| Jan-2021 | 50500 | 8585 | 13635 | 5050 |
| Feb-2021 | 50500 | 8585 | 13635 | 5050 |
| Mar-2021 | 50500 | 8585 | 13635 | 5050 |
| Apr-2021 | 50500 | 8585 | 13635 | 5050 |
| May-2021 | 50500 | 8585 | 13635 | 5050 |
| Jun-2021 | 50500 | 8585 | 13635 | 5050 |
| 153000 | 216270 | 63270 |
Loss of DA impact calculation on Transport Allowance
| Month-Year | TA | 17% | Actual | Loss |
| Jan-2020 | 3600 | 612 | 756 | 144 |
| Feb-2020 | 3600 | 612 | 756 | 144 |
| Mar-2020 | 3600 | 612 | 756 | 144 |
| Apr-2020 | 3600 | 612 | 756 | 144 |
| May-2020 | 3600 | 612 | 756 | 144 |
| Jun-2020 | 3600 | 612 | 756 | 144 |
| Jul-2020 | 3600 | 612 | 864 | 252 |
| Aug-2020 | 3600 | 612 | 864 | 252 |
| Sep-2020 | 3600 | 612 | 864 | 252 |
| Oct-2020 | 3600 | 612 | 864 | 252 |
| Nov-2020 | 3600 | 612 | 864 | 252 |
| Dec-2020 | 3600 | 612 | 864 | 252 |
| Jan-2021 | 3600 | 612 | 972 | 360 |
| Feb-2021 | 3600 | 612 | 972 | 360 |
| Mar-2021 | 3600 | 612 | 972 | 360 |
| Apr-2021 | 3600 | 612 | 972 | 360 |
| May-2021 | 3600 | 612 | 972 | 360 |
| Jun-2021 | 3600 | 612 | 972 | 360 |
| 11016 | 15552 | 4536 |
Summary of DA Calculation:
- Basic Pay as on 1.1.2020: Rs. 49,000
- Basic Pay as on 1.7.2020: Rs. 50,500
DA Difference (Jan 2020 to Jun 2021)
- 17% DA Amount: Rs. 1,53,000
- Actual DA Amount: Rs. 2,16,270
- Difference in DA: Rs. 63,270
DA impact on DA (Jan 2020 to Jun 2021)
- Eligibility of Transport Allowance: Rs. 3600
- 17% DA from Jan 2020 to Jun 2021: Rs. 11,016
- Actual DA Amount from Jan 2020 to Jun 2021: Rs. 15,552
- Difference in TA: Rs. 4,536
Total difference for 18 months on DA an TA
Total Difference: Rs. 67,806
No Additional DA and DR till June 2021
The Central Government has declared to freeze the Dearness allowance for three segments of January to June 2021, July to December 2020 and January 2021 to June 2021 for Central Government employees and pensioners due to COVID 19 pandemic crisis. [Click to view the detailed Finmin Order ]
CHECK ALSO:
- 5th, 6th, 7th Pay DA Chart for Central Government Employees and Pensioners
- DA Loss Calculation Table for Central Government Employees
- No Revision in DA for 18 Months – 17% Fixed DA and DR for 18 months from January 2020 to June 2021 to Central Government Employees and Pensioners