Dearness Allowance Hike Calculation: Dearness Allowance for central employees has increased by 4%. It is clear from the industrial inflation data that there will be a good increase in their dearness allowance. A formal announcement can be made in the cabinet meeting to be held in late September.
7th Pay Commission Dearness allowance: The increase in dearness allowance for central employees has been decided. This time he is going to get 4 percent dearness allowance. Its formal announcement will be made in the cabinet meeting to be held in late September. According to the data of Modi cabinet industrial inflation, the increase in dearness allowance is believed to be fixed. The AICPI index i.e. inflation figures are clearly showing that there is going to be a bumper increase for the central employees. With the increase in DA, there can be a big increase in the salary of the employees.
Dearness Allowance (DA) of central employees will be 38%
In the 7th Pay Commission, in the current structure, all central government employees and pensioners are being paid DA and DR at the rate of 34 percent. But, after September, payment will be made at the rate of 38%. Three months dearness allowance will be paid along with the September salary. It will also come with DA Arrear for July and August. Central employees can get an idea of the increase in salary according to their basic pay and grade.
How much salary will increase, understand DA Calculation
According to the pay-matrix of 7th pay commission, there will be a bumper increase in the salary of officer grade. Here we have calculated the basic salary of a pensioner at Rs 31,550. You can also understand from this how much the salary will increase.
Basic Pay – Rs 31550
Estimated Dearness Allowance (DA) – 38% – Rs 11,989 per month
Existing Dearness Allowance (DA) – 34% – Rs 10,727 per month
On increasing Dearness Allowance (DA) by 4% – Rs 1262 (every month) will come more
Annual Dearness Allowance paid – Rs 15,144 (at 38% DA) after 4% hike
Calculation on 38% DA
After increasing the dearness allowance by 4%, the total DA will become 38%. If you calculate in the maximum salary range, then you will get Rs 21,622 as DA every month on the basic salary of Rs 56,900. The total annual dearness allowance will be Rs 2,59,464.
How is Dearness Allowance calculated?
The next installment of DA can be paid in the salary of September. But, before that we can guess how it will be calculated and how it will be decided. If Dearness Allowance (DA Hike) is likely to increase by 4 percent, then it can be calculated on Basic Salary. If someone’s salary is Rs 20,000, then at the rate of 4 percent, his salary will increase by Rs 800 in a month.
This formula will come in handy in DA Calculation
There is a formula for dearness allowance calculation. The formula for central employees is [(Average of All India Consumer Price Index (AICPI) for last 12 months – 115.76/115.76]×100. Now if we talk about Dearness Allowance of people working in PSU (Public Sector Units), then the method of its calculation is- Dearness Allowance Percentage = (Average of Consumer Price Index of last 3 months (Base Year 2001=100)- 126.33))x100. On this basis the salary of central employees is calculated.
