7th Pay Commission: As good news for central government employees, the government may announce a hike in Dearness Allowance (DA) by the end of this month, which will lead to a big hike in their salaries.
As per the Zee News report, more than 1 crore central employees and pensioners will be benefited by the expected announcement by the government by the end of this month. It is believed that the government can transfer the increased DA hike for the last two months and the arrears along with the March salary. A 3 percent increase in DA means that the total DA of central government employees will be 34 percent. This means a central government employee with a basic pay of Rs 18,000 will get an annual dearness allowance of Rs 73,440. If dearness allowance is increased to 34 percent, then the salary will increase from Rs 73,440 to Rs 2,32,152 to Rs 20 thousand.
What is DA and what do we know so far?
Dearness Allowance is a component of the salary of government employees and pensioners. To deal with rising inflation, the central government revises DA and DR benefits twice every year in January and July. DA varies from employee to employee based on whether they work in an urban area, a semi-urban area or a rural area.
The government’s last move benefited 48 lakh central government employees and 65 lakh pensioners across India when it increased DA in October.
Till now 31 per cent dearness allowance is paid to central government employees. The most recent hike was done in July and October 2021, following a month-long suspension of allowances due to the COVID-19 pandemic. The Union Cabinet in October had increased Dearness Allowance and Dearness Relief by 3 per cent to 31 per cent to benefit 47.14 lakh central government employees and 68.62 lakh pensioners.
DA expected to increase by 3 percent
According to media reports, the central government can announce to increase the DA by 3 percent. A hike of 3 per cent can lead to an increase in salaries of government employees by up to Rs 20,000. Under the 7th Central Pay Commission, the DA of government employees is calculated on the basis of basic pay. The current DA rate stands at 31 per cent, after a hike of 3 per cent in October and 11 per cent in July.
The announcement of hike in Dearness Allowance (DA) may be made by the end of March. DA was increased by 3 per cent in January 2022, taking the total DA of employees from 31 per cent to 34 per cent. According to AICPI data, DA has reached 34.04 per cent till December 2021. After 3% hike in allowances, DA on basic salary of Rs 18,000 will be Rs 73,440 per annum.
Calculation on minimum and maximum basic pay
If the basic salary of the employee is Rs 18,000
– New DA (34 per cent) Rs 6120/month
– DA till date (31%) Rs 5580/month
– How much increased dearness allowance 6120- 5580 = Rs 540 / month
– Increase in annual salary 540X12 = Rs.6,480
If the basic salary of the employee is Rs 56900
– New DA (34 per cent) Rs 19346/month
– DA till date (31 percent) Rs 17639 / month
– How much increased dearness allowance 19346-17639 = Rs 1,707 / month
– Increase in annual salary 1,707 X12 = Rs 20,484
read all breaking news, today’s fresh news And Assembly Election Live Updates Here.