DA Loss Calculation for CG Employees

DA Restored! 28% of Dearness Allowance from July 2021

The Union Cabinet Committee accepted the agenda on Dearness Allowance for Central Government Employees with effect from 1st July 2021 at the rate of 28%. [Click to view read more]

Check: DR (Dearness Relief) Loss in Pension Calculator for Govt Pensioners

Union Cabinet Committee Approved to Hike by 11% from the existing rate of 17% – Click to read more

DA Arrears for CG Employees

DA arrears for Central Government employees for the period from January 2020 to June 2021

As per the Finance Ministry order dated 23rd April 2020, No Arrears for the period from 1st January 2020 till 30th June 2021 shall be paid.

Calculation of DA Arrears:

Additional DA for the period from January 2020 to June 2021

• 1.1.2020 to 30.6.2020: 4%
• 1.7.2020 to 31.12.2020: 3%
• 1.1.2021 to 30.6.2021: 4%

Cummulative DA for the period from January 2020 to June 2021

• 1.1.2020 to 30.6.2020: 21% (17% + 4%)
• 1.7.2020 to 31.12.2020: 24% (21% + 3%)
• 1.1.2021 to 30.6.2021: 28% (24% + 4%)
  

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The total DA loss is 11% for Central Government employees and Pensioners.

DA Loss in Salary Calculator for the period of January 2020 to June 2021

Additional DA Freeze (Temporarily Suspended) for Central Govt employees for eighteen months between January 2020 and June 2021.

July 2020 DA & January 2021 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, which is used in our software tool for your information:

• 1 January 2020 to 30 June 2020 = Additional DA 4% (17% + 4% = 21%)
• 1 July 2020 to 31 December 2020 = Additional DA 3%  (21% + 3% = 24%)
• 1 January 2021 to 30 June 2021 = Additional DA 4% (25% + 4% = 28%)

What will be the amount of DA loss in Salary for CG employees for 18 months?

The Finance Ministry issued order No.1/1/2020-E-II(B) on 23rd April 2020 to freeze the DA and DR to CG employees and pensioners in view of crisis arising out of Coronavirus (COVID-19) outbreak.

We have created a simple online estimation tool to predict the approximate loss in salary for 18 months due to freezing the DA for Central Govt employees. The calculator will show the loss amount of individuals on the basis of input their basic salary and Transport allowance details.

Confirm DA and DR Table from January 2020 to June 2021

17% fixed DA for 18 months from January 2020 to June 2021 for Central Government Employees and Pensioners

As per the order issued by the Department of Expenditure (under Finance  Ministry) on 23rd April 2020, no additional  Dearness allowance and Dearness Relief for Central Government employees and pensioners for 18 months from January 2020 to June 2020. In other words, the existing rate of 17% DA will be continued up to June 2021.

Freezing of DA impact on various calculations

Freezing of Dearness Allowance is not only impacting on arrears but also in pension and all retirement benefits. The stoppage of DA will also affect the condition of revising all allowances including HRA if DA crosses 25%.

DA Calculation on Basic Salary

For example, see the 17% DA chart for all pay matrix level of starting pay scale:

• Pay Level 1 – Basic Salary Rs. 18000: Rs. 3060
• Pay Level 2 – Basic Salary Rs. 19900: Rs. 3383
• Pay Level 3 – Basic Salary Rs. 21700: Rs. 3689
• Pay Level 4 – Basic Salary Rs. 25500: Rs. 4335
• Pay Level 5 – Basic Salary Rs. 29200: Rs. 4964
• Pay Level 6 – Basic Salary Rs. 35400: Rs. 6018
• Pay Level 7 – Basic Salary Rs. 44900: Rs. 7633
• Pay Level 8 – Basic Salary Rs. 47600: Rs. 8093
• Pay Level 9 – Basic Salary Rs. 53100: Rs. 9027
• Pay Level 10 – Basic Salary Rs. 56100: Rs. 9537