Diwali has come early this year for government employees as the central government has increased the Dearness Allowance (DA) of employees by 3 percent under the 7th Pay Commission. Earlier DA was 28 per cent and after 3 per cent hike it has been increased to 31 per cent.
After increasing the DA, the salary of government employees will be increased according to their pay grade. The hike in Dearness Allowance and Dearness Relief (DR) by the central government will prove beneficial for 47.14 lakh central government employees and 68.62 lakh pensioners.
Since the DA and DR of central government employees has been increased by 3 per cent to 31 per cent, they will be able to take home the increased annual salary package. The increment will be done as per the basic pay and grade of the employee.
Earlier in July this year, the Center had decided to increase the DA to 28 per cent and it has been increased once again to 31 per cent. Speculations are rife that as per the DA hike, the increased salary will be included in the salary before Diwali.
Salary increment as per DA hike
With the increase of 3 per cent in dearness allowance, the total DA of government employees has now gone up to 31 per cent. According to the 7th Pay Commission, the salary of level 1 central government employee ranges from Rs 18000 to Rs 56900. For an employee with a salary of Rs 18000, the annual increment will be Rs 30,240.
Basic Pay of Employee
- Rs 18,000 New Dearness Allowance (31%) – Rs 5580/month
- Dearness Allowance so far (17%)
- Increase in DA per month by Rs 3060 (5580-3060)
- Annual increment of Rs 2520/month ( 2520X12) – Rs 30,240
According to the same calculation, here is the annual increment of a central government employee with a salary of Rs 56900.
Basic Pay of Employee
- Rs.56900 New Dearness Allowance (31%) – Rs.17639/month
- Dearness Allowance till date (17%)
- Rs.9673 /month Increase in DA (17639-9673)
- Annual increment of Rs.7966/month ( 7966X12) – Rs 95,592
According to 31 per cent DA, the total annual dearness allowance on the basic pay of Rs 56,900 will be Rs 2,11,668. According to media reports, the effect of change in salary and DA will be visible in the package of central government employees before Diwali.
