Based on the recommendations of the 7th Pay Commission, the latest All-India CPI-IW data for the month of May is projected to record a record increase in DA. If the figures are any indication, the DA could rise by around 4% (DA ± 4%) or more.
There is a possibility of good news coming soon to the central government employees regarding Dearness Allowance (DA). Now, there is a strong possibility that the Center will discuss the issue in the upcoming cabinet meeting, which is expected to take place in the first week of August.
If the government raises the issue of increase in dearness allowance in the cabinet meeting and increases the allowance, then the long wait of the employees will end. Additionally, since the DA for the period July to December is estimated to be the highest this time, there will be a big hike in the salaries of central government employees.
The All-India Consumer Price Index (AICPI) saw an increase of 0.2 per cent in June from February this year, taking the AICPI to 129.2. This figure is being seen by analysts as confirmation of a DA 4 percent hike.
Total DA increased by 4 per cent to 38 per cent
4 per cent hike in dearness allowance has been confirmed. The All India Consumers Price Index or AICPI numbers are a clear indication as to why the DA is being increased by 4 per cent.
An announcement on this can be made soon. If the announcement is made in August, then the central government employees will also get arrears of one month for July. But, the biggest news is that there may be a significant increase in the total salary.
From the latest All India CPI-IW data for the month of May, this time a record increase in DA is expected based on the recommendations of the 7th pay commission. If the figures are any indication, the DA could rise by around 4% or more.
May 2022 All-India CPI-IW rose 1.3 points to 129.0. This marked an increase of 1.02 percent, or one month, over the previous month, compared to an increase of 0.42 percent between the same months a year ago.
It is important to note that the AICP Index plays a major role in the calculation of DA. So the CG staff is expecting 4-5% growth considering the May results. The total DA will rise to 38 per cent with a hike of 4 per cent (DA hike by 4%).
DA hike announcement When?
The most recent rumors suggest that an announcement can be expected on August 7. However, formal confirmation in this regard is still pending. Earlier now, the Finance Ministry had stopped the DA hike from January 2020 to June 30, 2021, due to the COVID-19 pandemic. However, DA increased from 17% in July 2021 to 28% when it was reintroduced
Calculation on 38% DA
Till now the employees are getting 34 per cent DA. If 4 per cent hike in DA is announced, the DA will be 38 per cent and will be applicable from January 1, 2022.
This will lead to a significant increase in the salary of the employees. Now the annual increment of the employees will be Rs 6840 with the basic salary of Rs 18000.
- Basic pay of a central employee = Rs 18,000
- Current Dearness Allowance (34%) = Rs.6120 per month
- New Dearness Allowance (38%) = Rs.6840 per month
- Increase in DA: 6840- 6120 = Rs.720 per month
- Increase in annual salary : 720X12 = Rs.8640
Calculation on maximum basic pay
- Basic salary of central employees = Rs 56900 per month
- New Dearness Allowance (38%) = Rs.19346 per month
- Current Dearness Allowance (34%) = Rs 21622 per month
- Increase in Dearness Allowance: Rs 21622-19346 = Rs 2276 per month
- Increase in annual salary : 2276 X12 = Rs 27,312
