DA freeze for Central Government Employees and Pensioners- Estimate Notional Loss
Tools to calculate notional Loss in Salary and Pension on account of DA freeze announced by Govt for Central Government Employees and Pensioners
DA freeze for Central Government Employees and Pension – How much will be the notional loss in salary of Central Government Employees and Pensioners ?
Tool to calculate notional Loss in Salary on account of DA freeze announced by Govt for Central Government Employees and Pensioners
On 23.04.2020, Govt issued order No.1/1/2020-E-II(B) to freeze Dearness Allowance for Central Government Employees and Dearness Relief to Central Pensioners from January 2020 to June 2021. As observed by Govt DA freeze has been effected in view of crisis arising out of COVID-19 outbreak.
Earlier on 13.03.2020 Union Cabinet approved increase in DA by 4% from January 2020 for Central Government Employees and Pensioners. However, by issue of OM dated 23.04.2020, cabinet approval has been put on hold. Further, as per OM dated 23.04.2020 the additional installments of Dearness Allowance and Dearness Relief due from 1st July 2020 and 1st January 2021 shall also not be paid.
However, the rates of Dearness Allowance and Dearness Relief as effective from 1st January 2020, 1st July 2020 and 1st January 2021 will be restored prospectively and will be subsumed in the cumulative revised rate effective from 1st July 2021.
It is also clearly mentioned that Central Government Employees and Pensioners will not be entitled to any Arrears on account of restoration of the rates of Dearness Allowance and Dearness Relief respectively effective from 1st January 2020, 1st July 2020 and 1st January 2021, from 1st July 2021.
From the above, it could be perceived that there will be a notional loss in salary on account of Dearness Allowance Freeze announced by Govt.
Hence, an attempt has been made here to estimate the same in order to facilitate the Central Government Employees and Pensioners to plan their expenditure in the coming months.
Calculate Notional Loss in Salary on account of DA freeze from January 2020 to June 2021
|Effective Loss in Salary on account of DA freeze from January 2020 to June 2021|
|Total DA on Basic Pay and TA from January 2020 to June 2020 (based on DA @21% from January 2020 announced earlier by Govt, and assumed DA from 22% to 30% as selected by the user in the tool for the period from July 2020 to June 2021)||:Rs.|
|Total DA on Basic Pay and TA from January 2020 to June 2020 (based on DA Rate @ 17% from Jan 2020 to Jun 2021)||:Rs.|
|Net Loss in Salary on account Freezing of DA from January 2020 to June 2021||:Rs.|
|Disclaimer: This calculation is based on DA @21% from January 2020 announced earlier by Govt, and assumed DA from 22% to 30% as selected by the user in the tool for the period from July 2020 to June 2021. This website holds no responsibility for Arithmetical inaccuracy if any. Further, this post / article is meant for information purpose only and do not represent the opinion of the website on the policy decision taken by Govt.|
|Entry Pay (EP)||7000||7730||8460||9910||11360||13500||17140||18150||20280||21000||25350||29500||46100||49100||53000||67000||75500||80000||90000|
We have also come up with a tool to calculate notional loss in Pension in the case of Central Government Pensioners due to Dearness Relief Freeze announced by Finance Ministry from January 2020 to June 2021.
Disclaimer: This calculation is based on DA @21% from January 2020 announced earlier by Govt, and assumed DA from 22% to 30% as selected by the user in the tool for the period from July 2020 to June 2021. This website holds no responsibility for Arithmetical inaccuracy if any. Further, this post / article is meant for information purpose only and do not represent the opinion of the website on the policy decision taken by Govt.