7th Pay Commission: The next installment of DA is likely to be paid along with the salary of August. It is quite easy to guess how to calculate Dearness allowance.
7th Pay Commission: Central employees are now waiting for the announcement of the next dearness allowance (Central government DA News). Due to low basic salary, they get salary hike through DA only. In such a situation, the new update can give good news for them. Actually, there are signs of a good increase in the next DA from the inflation data. 3% DA Hike is considered almost certain. At the same time, there is a possibility of increasing (Dearness allowance) up to 4%. If this happens, then this will be the biggest increase after January 2020. The AICPI April Index numbers will come on 31 May. If there is a jump in this also, then the situation of increase of 4 percent dearness allowance (DA Hike) will become clear.
May 38% Dearness Allowance?
Under the 7th Pay Commission, now all central government employees and pensioners are being paid DA and DR at the rate of 34 percent. But, by August, it can increase to 38%. The index indicated this with a quantum jump in March. If there is a jump in the number of April 2022 as well, then surely there will be a 4 percent increase in DA. After this, the numbers of May and June will also be important. If the AICPI index turns out to be above 127, then 4% dearness allowance is sure to increase. Central employees can get an idea of the increase in the total salary according to the basic pay grade.
How will Dearness Allowance be calculated?
The next installment of DA is likely to be paid along with the salary of August. It is quite easy to guess how to calculate Dearness allowance. After increasing the Dearness Allowance (DA Hike) by 4 percent, it can be calculated on the 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 works
There is a formula for dearness allowance calculation. The formula for central employees is [(Average of All India Consumer Price Index (AICPI) for the 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
How much will the salary increase, understand DA Calculation
According to the 7th pay commission, there will be a bumper increase in the salary of officer grade. If someone’s basic salary is Rs 31,550. If you calculate on this then…
- 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
Let us assume that if dearness allowance increases by 4%, then the total DA will become 38%. If you calculate in the maximum salary range, then Rs 21622 will be available as DA every month on the basic salary of Rs 56,900. The total annual dearness allowance will be Rs 2,59,464.
