New Delhi: The much-awaited hike in Dearness Allowance (DA) has brought some cheer for the central government employees. In this regard, the Finance Ministry has also issued an order to implement the decision of the cabinet, which will be effective from July 1.
The Finance Ministry said that for Armed Forces personnel and Railway employees, separate orders regarding 28 per cent DA will be issued by the respective ministries. Earlier three additional installments of DA which were due from January 1, 2020, July 1, 2020 and January 1, 2021, were stopped.
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The current hike will represent an 11 per cent hike in dearness allowance and dearness relief for central government employees and pensioners, taking the new DA rate to 28 per cent.
How will the DA hike affect your monthly salary?
The current hike in DA will benefit 48 lakh central government employees. This increase will be calculated on the basic pay of the employees. For example, an employee gets Rs 100 as basic salary. The amount of DA at the rate of 17 per cent comes to about Rs.17. Now, the total DA has increased from 28 per cent of Rs 100 to Rs 28.
The minimum basic pay recommended by the 7th Pay Commission for central government employees at the entry level is Rs 18,000. At the rate of 17 percent DA, the employees were getting Rs 3,060 as dearness allowance. With the current increase of 28 per cent, employees will get Rs 5,040 as dearness allowance in a month.
There will be a significant increase in the monthly payments of central government employees from July, just before the festive season.
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