Thursday, 28 October 2021

DA hike by Centre for central govt employees to 28% in 7th Pay Commission

DA hike by Centre for central govt employees to 28% in 7th Pay Commission

Over 1.2 crore central employees and pensioners have been waiting to restore increased DA and DR for an extended time. Although, the wait is finally over, as the Central government has reportedly decided to convert the rise in the allowance in a cabinet meeting led by Prime Minister Narendra Modi on Wednesday (July 14).

This move comes on the back of various media reports speculating that the Dearness Allowance (DA) and Dearness Relief(DR) convenience under the 7th Central Pay Commission would be put back in July. The DA and DR hike benefits will come into effect from July 1, 2021. The action is expected to cost the government approximately Rs 34,400 crore.

DA hike by Centre for central govt employees to 28 in 7th Pay Commission 1getty images

Read More: Hike in MSP for paddy ,oilseeds and pulses

Central employees right now are getting DA at the rate of 17 percent. Although employees will now get a DA at 28 percent of their basic pay,

How to calculate the Dearness Allowance raise?

The central government had raised the DA by 4 percent in January 2020, 3 percent in June 2020, and 4 percent in January 2021. According to the calculations, the total hike will become 28 percent (17+4 +3+4).

So, if an employee earns Rs 20,000 basic salary per month, their salary will increase by 11 percent, which will be Rs 2200. You can similarly calculate your salary hike based on your basic pay.

No decision on July 2021 DA hike

The Ministry of Labor has previously stated the All India Consumer Price Index figures for May 2021. The index for May 2021 increased by 0.5 points, bringing it to 120.6. The index needs to be above 130 marks for those uninitiated for DA to increase by 4 percent. The data for June is currently awaited. Also Read: Wholesale inflation eases to 12.07% in June as food, crude prices soften.

If you add the speculated hike of 3 percent in July 2021, the total DA will stand around 31 percent of your basic salary. However, the government is yet to decide on the DA hike for July.

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