7th Pay Commission: Central employees get gifts from the central government twice a year. It has to wait for 6 months. After July, there is a possibility of a bumper increase in the salary of central employees.
7th Pay Commission: Central employees will soon get good news. Just wait a little and then dearness allowance will increase. Remember, 34 per cent DA is being paid now. But, in the coming days it can be 38 percent. That means there may be an increase of 4 percent in the Dearness Allowance. But, there is a wait of three months now. The situation is almost clear. After the bumper increase of 4 percent, DA will be available at an annual level of Rs 2 lakh 60 thousand. Let’s understand how…
Dearness Allowance may increase by 4%
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, the new dearness allowance will be announced in July. It is expected that it will increase by 4 percent and become 38%. It will be paid in the salary of August. That means you may have to wait till August for the announcement. Central employees get DA according to basic pay and grade. In such a situation, it can be found out by calculating that how much money will increase in total.
How is Dearness Allowance calculated?
The next installment of DA is likely to be paid along with the salary of August. It may also get delayed due to policy matter. But, before that we can guess how it will be calculated and how it will be decided. If there is a possibility of increasing the Dearness Allowance (DA Hike) by 4 percent, then it can be calculated on the Basic Salary. If someone’s salary is Rs 20000, then at the rate of 4 percent, his salary will increase by Rs 800 in a month.
By which formula the salary will be decided?
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
Now understand DA Calculation
According to the 7th pay matrix, 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.
