DA for government employees: DA only on ‘basic pay’, says govt; Know Salary Calculation

DA Hike 7th Pay Commission: The Central Government has recently announced hike in Dearness Allowance and Dearness Relief for Central Government employees and pensioners respectively. With the latest announcement, salaried people will be paid DA and DR at the rate of 34 per cent, rising from the earlier rate of 31 per cent, Prime Minister Narendra Modi-led central government has said. DA will increase 3 percent, with effect from January 1, 2022. The move will impact around 47.68 lakh central government employees and 68.62 lakh pensioners amid rising fuel prices, oil prices and inflation in general.

Although DA calculation It is calculated only on the basic pay of the employee and no other allowance is taken into account while computing it. This means that all the central government employees, who have to get their revised pay in March after the DA hike, will get the increased amount based on the calculation based on the basic pay only.

The Department of Expenditure has also issued a clarification on this note on March 31 after the government announced the DA hike under the Seventh Pay Commission.

Here are the key points in the government’s office memorandum on DA hike and its payment

– “The term ‘Basic Pay’ in the revised pay structure means the pay drawn at the prescribed level in the Pay Matrix as per the recommendations of the 7th CPC as approved by the Government, but does not include any other type of pay like special pay etc.” The Department of Expenditure (DOE) has said in the Office Memorandum (OM) figures.

– “Dearness Allowance shall continue to be a distinct element of remuneration and shall not be treated as pay within the purview of FR 9(21),” the office memorandum further stated.

The department said that payment of dearness allowance having fraction of 50 paise and above may be rounded off to the next higher rupee and fractions of less than 50 paise may be ignored.

– “The arrears of Dearness Allowance shall not be paid before the date of disbursement of salaries of March, 2022,” it said.

– Estimates and expenditure will be chargeable to the concerned Head of Defense Services Estimates. Separate orders will be issued by the Ministry of Defense and Ministry of Railways in respect of Armed Forces personnel and Railway employees respectively. The memorandum further states that these orders will also be applicable to the civilian employees getting salary from the Defense Services.

DA Hike 7th Pay Commission: Salary Calculation

According to the notice of the Department of Expenditure, if the basic salary of an employee is Rs 18,000, he will get dearness allowance of Rs 6,120 after the latest increase. Earlier, the employee was getting Rs 5,580 DA at the rate of 31 per cent DA. This would mean that there has been an increase of Rs 540 after the latest DA hike.

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