7th Pay Commission: In a couple of months, more good luck can come for the central government employees. There may be another hike in the salary of central employees as the government is planning to increase Dearness Allowance (DA) in July.
According to media reports, employees can see the increased salary account in their bank accounts in July or the next month in August. It is to be noted here that the DA hike is provided by the government to the employees twice a year in the months of January and July. The growth percentage has been fixed based on the latest data on retail inflation
The retail inflation data for April 2022 is expected to be out this week. After rising to 0.9 per cent from 6.1 per cent in February this year, the inflation rate rose to 7 per cent in March. The recent rise in inflation comes amid rising prices of food and food products.
Dearness allowance of central employees is going to increase from July 1. The dearness allowance of the employees will now be 38% directly. They will get the benefit of this increase in the form of a bumper increase in salary. Let us know how much will the salary increase? In the midst of rising inflation, the dearness allowance of employees can be increased in July. It has been decided from the All India Consumer Price Index (AICPI) which came in March that dearness allowance may increase by 4 percent in July-August.
How much increase is expected for central government employees?
The Center may increase the DA of employees in July amid rising inflation. According to the report, the DA may be increased by 4%, which has been fixed on the basis of the All India Consumer Price Index (AICPI) for July-August.
The AICP Index for the first two months of 2022 – January and February – saw a decline. From 125.1 in January to 125 in February, it then jumped 1 point in March to 126. AICP data for the next three months of April, May and June is yet to come. The index climbing above 126 will help the government to deliver a 4% DA hike.
Impact on salary
With an increase of 4 per cent, the DA figure will go up to 38 per cent from the existing 34 per cent. This will affect the increase in the maximum and minimum basic wages that the central government employees will get in their bank accounts. In the midst of rising inflation, the dearness allowance of employees can be increased in July. All India Consumer Price Index (AICPI), which came in March, has decided that dearness allowance may increase at the rate of 4 percent in July-August.
What do the figures say?
Significantly, there was a fall in the AICP Index for January and February 2022. Where the AICP Index figure stood at 125.1 in January, it stood at 125 in February, while it increased by 1 point to 126 in March. Numbers for April- May and June are yet to come. If this figure goes above 126, then the government can increase the DA by 4 percent.
How much will the salary increase?
If the government increases the DA by 4 percent, then the DA of central employees will increase from 34 percent to 38 percent . Now let us see here how much there will be an increase in the maximum and minimum basic pay.
Calculation on maximum basic pay
- Basic Pay Per Month: Rs 56,900
- DA received (34%): Rs 19,346
- DA after revision (38%): Rs 21,622
- Monthly increase in DA: Rs 2,276
- Annual Growth (Monthly Growth x 12): Rs. 27,312
For minimum basic pay
- Basic Pay Per Month: Rs 18,000
- DA received (34%): Rs 6,120
- DA after revision (38%): Rs: 6840
- Monthly increase in DA: Rs 720
- Annual Growth: Rs. 8,640
