7th Pay Commission Alert! Centre likely to increase DA, pension by Rs 20,000 - Details inside

As the New Year approaches us, the Central government has decided to reward the hard work of their employees by increasing their Dearness Allowance (DA). There is also some good news for Pensioners who were under the Central government because they will also get a hike in their pension. 

The new DA is reportedly going to increase the salary of each individual by a minimum of Rs 20,000. If the same fitment factor is also increased, then the salary will increase by 26 thousand. The fitment factor decides the basic salary for all central government employees.

As per reports, the DA and the pension of ex-central employees will increase by 3 per cent in January 2022. After this, DA will increase from 31 per cent to 34 per cent, which will benefit 68 lakh employees and 48 lakh pensioners and salary will also increase by Rs 20,000.

At present, the DA as per AICPI data till September 2021 was 32.81 per cent and DA is yet to be calculated according to October-November as well as December data. If the CPI(IW) figure remains at 125 by December 2021, DA is certain to increase by 3 per cent and then it will be paid in January 2022. This means that DA will increase from 31 per cent to 34 per cent in 2022 after a 3 per cent hike. 

For example, if the DA is 34 per cent, the DA of employees with the basic salary of Rs 18,000 will be Rs 6,480 annually and DA of Rs 56,000 salary will be Rs 20,484 annually.

The Central government is also planning to increase the fitment factor of the employees. The fitment factor was last increased in 2016, in which the minimum basic salary of employees was increased from Rs 6,000 to Rs 18,000. This will see a big jump in the salary of the employees. With the same increase in basic salary, dearness allowance will also automatically increase.