7th Pay DA Hike Update: The coming month is bringing good news for the central employees. An announcement may be made soon on increasing dearness allowance and dearness relief for employees and pensioners.
There may be an announcement to increase DA at the rate of 4 percent in September. From the data of the AICPI index till June, it is clear that their dearness allowance (DA Hike) will increase by 4 percent.
If sources are to be believed, it can be announced in the meeting of the Union Cabinet to be held on September 28. The new dearness allowance will be applicable from July 1, 2022. After the announcement, the benefit of increased DA (DA Hike Benefit) will be available. September salary only. At present, central employees are getting 34% dearness allowance.
Dearness Allowance: 4% hike confirmed
According to DoPT sources, dearness allowance of central employees is linked to the AICPI index. It is clear from the figures that have come so far that there can be a big jump in dearness allowance. It can be included in the cabinet meeting to be held on 28 September. Let us tell you, there has been a rise in the index in June as well and there has been a tremendous jump in dearness allowance. The AICPI index has reached 129.2.
Expert claims that DA will increase by 4 percent
DA will increase by 4%: Experts who calculate inflation claim that 4% DA hike will be stamped in September. The All India Consumer Price Index-IW figure stood at 129.2 in June. Due to this, there is bound to be an increase of 4 percent in dearness allowance. According to experts, if the dearness allowance figure for the month of June had reached 130, then the confusion regarding dearness allowance could have increased.
DA Hike: How do you know how much it will add up?
The dearness allowance of central employees depends on the consumer inflation i.e. All India Consumer Price Index. If this figure increases continuously, then dearness allowance also increases in the same order. Consumer inflation data for the first half of this year is out. It is certain that the dearness allowance will increase at the rate of 4% in the coming days.
DA’s increased money will come on this date
After the increase of 4 per cent in dearness allowance, dearness allowance of central employees will be 38 per cent. The increased dearness allowance will be given in the salary of September 2022. It will be implemented from 1st July. Paying it on behalf of the government on the auspicious days of Navratri will bring a huge amount in the pockets of the employees.
7th Pay Commission: New Formula to get Dearness Allowance
The Ministry of Labor and Employment has changed the calculation formula regarding dearness allowance. The Labor Ministry has made changes in the base year 2016 for Dearness Allowance (DA calculation). A new series of Wage Rate Index (WRI-Wage Rate Index) has been released. The Labor Ministry said that the new series of WRI with base year 2016=100 will replace the old series of base year 1963-65.
What will be the DA?
With an increase of 4 per cent in dearness allowance, it will increase to 38 per cent. At present, 34 percent dearness allowance is being given to central employees by the government. With DA being 38 percent, there will be a good jump in salary. Let us see how much will the minimum and maximum basic salary increase with 4% DA?
Calculation on maximum basic salary
- Basic salary of the employee Rs 56,900
- New Dearness Allowance (38%) Rs 21,622/month
- Dearness Allowance so far (34%) Rs 19,346/month
- By how much dearness allowance increased 21,622-19,346 = Rs 2260/month
- Increase in annual salary 2260 X12 = Rs 27,120
- Calculation on minimum basic salary
- Basic salary of employee Rs 18,000
- New Dearness Allowance (38%) Rs.6840/month
- Dearness Allowance so far (34%) Rs.6120/month
- How much dearness allowance increased 6840-6120 = Rs.1080/month
- Increase in annual salary 720X12 = Rs 8640
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