7th Pay Commission: As we are around the corner to enjoy the upcoming festive season, it is likely that the central government employees will get another treatment in the form of a hike in their salaries. dearness allowance (DA) and dearness relief (Doctor). It is believed that the central government can increase this DA rates A further hike of 3 per cent for both employees and pensioners ahead of the festive season. This decision is likely to come soon as the Central Government had already restored the DA of the employees. The DA was increased from 17 per cent to 28 per cent by the government, with the hike applicable for their salaries from July 2021.
It should also be noted that the government had increased the House Rent Allowance (HRA) of employees from 24 per cent to 27 per cent. With the possibility of a 3 per cent hike in DA and DR again, the DA will be around 31 per cent against their basic pay in the near future.
The last dearness allowance hike was in January 2020, where the government increased it to 4 per cent, followed by a 3 per cent hike in June of the same year. Central government employees saw another hike in January of 2021, where DA once again increased by 4 per cent.
The employee unions are hopeful that the salary hike will be announced soon. AICPI data suggested that DA is payable at 31 per cent, given that the index for June 2021 rose by 1.1 points, leaving the final figure at 121.7.
The DA hike which was expected to be announced in the month of September 2021 is most likely to be implemented for the first half of 2021. However, there has not been much noise from the government to indicate that it is planning. Once again, if the announcement of increasing DA is announced this month, then according to media reports, DA will be payable along with the salary of October.
However, employee unions are of the view that the government should include the DA hike with September salaries as well. With all these things, it should be kept in mind that there will be around 48 lakh beneficiaries who are central government employees and around 65 lakh pensioners who will be benefited by this increase.
Earlier, in an effort to provide some relief to its employees, the Center hiked the Variable Dearness Allowance (VDA). This put it in the range of Rs 105 to Rs 210 per month. The rates were effective from April 2021. Its aim was to benefit about 1.5 crore workers at that time.
All these changes have come due to the temporary moratorium of DA for almost 18 months due to the COVID-19 pandemic and the affected economy. With all the hikes initiated by the Centre, there were some states which increased the DA rates for their government employees. These states include Uttar Pradesh, Jammu and Kashmir, Jharkhand, Haryana, Karnataka, Rajasthan and more recently Assam. Most of these had increased the DA of government employees by about 11 per cent.
How to Calculate DA Hike
In such a situation, the government increases the DA by 3 percent to 31 percent of the basic pay. Employees and pensioners just need to find out the percentage equal to their basic pay to get the DA amount. For example, if an employee is paid Rs 20,000 per month, then 3 per cent of that would be Rs 600 or more. Hence, the said employee will get an additional Rs 600 on top of the basic salary of Rs 20,000. Now, assuming the increase to be 31 per cent, 31 per cent of Rs 20,000 would be Rs 6,200, which the employee would get.
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