The salary of government employees will increase massively after the DA hike of 3 percent by the central government.
Diwali has come early for government employees this year as the central government has hiked the dearness allowance of employees by 3 percent, under the 7th pay commission. The DA was earlier 28 percent, and after a 3 percent hike, it has been increased to 31 percent.
The salary of the government employees, after the DA hike, will be increased as per their pay grade. The dearness allowance and dearness relief hike by the Centre will prove to be beneficial for over 47.14 lakh central government employees and 68.62 lakh pensioners.
As the DA and DR for central government employees have been increased by 3 percent, to 31 percent, they will be able to take home an increased annual salary package. The salary increase will be done as per the basic pay and grade of the employee.
Earlier in July this year, the Centre had decided to hike the DA to 28 percent, and it has once again been increased to 31 percent. It is speculated that the increased salary as per the DA hike will be included in the salary before Diwali.
7th Pay Commission: Salary increase as per DA hike
As the dearness allowance has been increased by 3 percent, the total DA for government employees is now 31 percent. As per the 7th Pay Commission, the salary of a Level 1 central government employee ranges from Rs 18000 to Rs 56900. For an employee with a salary of Rs 18000, the annual salary increase will be Rs 30,240. Here’s how-
- Basic salary of the employee- Rs 18,000
- New dearness allowance (31%) - Rs 5580/month
- Dearness allowance so far (17%) - Rs 3060/month
- Increase in DA (5580-3060) - Rs 2520/month
- Annual salary increase (2520X12) - Rs 30,240
As per the same calculations, here is the annual salary increase of a central government employee with a salary of Rs 56900.
- Basic salary of the employee- Rs 56900
- New dearness allowance (31%) – Rs 17639/month
- Dearness allowance so far (17%) – Rs 9673/month
- Increase in DA (17639-9673) – Rs 7966/month
- Annual salary increase (7966X12)- Rs 95,592
According to 31% DA, the total annual dearness allowance on the basic salary of Rs 56,900 will be Rs 2,11,668. According to media reports, the change in the salary and DA will reflect in the package of the central government employee before Diwali.
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 "7th Pay Commission: Salary of Central govt employee to increase up to Rs 95000 - Know calculation here")
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