7th Pay Commission: DA arrears to bring huge benefits to Central government employees in July, see calculation

7th Pay Commission Latest News: At least 52 lakh central employees will start getting enhanced Dearness Allowance (DA) from July 1, which will see a sharp jump in their pay matrix, eventually leading to a sharp increase in their salaries. However, central employees are also worried about their DA arrears, as the picture about it is not clear yet. However, the National Council of JCM has scheduled a meeting with government officials by June 26. 

Calculation of DA arrears:

Central employees are waiting for the decision to be taken at the June 26 meeting hoping that the government will decide in their favour. Speaking on the pay matrix and DA arrears of the 7th Pay Commission, Shiv Gopal Mishra, Secretary-Staff Side, National Council of JCM, said that a simple calculation can show the DA arrears that central government employees can expect. 

Level-1 employee with the pay grade of Rs 18,000 and in 7th Pay Commission salary range of Rs 18,000-56,000, gets minimum basic pay of Rs 18,000. DA of 4 per cent during January 2020-June 2020, 3 per cent DA from July 2020-December 2020 and an estimated 4 per cent DA from January 2021-June 2021 will be restored from July 1, 2021. 

Calculation at Pay Scale Level-1 (Rs 18000-Rs 560000)

Now let's take a look at how much DA arrears will come into the account of central government employees if these outstanding dearness allowances are paid. We are calculating it here on the Level-1 Pay scale of the 7th Pay Commission:

Outstanding DA period 

January 2020-June 2020: Rs 4,320-13,656
July 2020-December 2020: Rs 3,240-10,242
January 2021-June 2021: Rs 4,320-13,656

This means that an employee whose basic pay is Rs 18,000 will get a three-month DA arrear (4,320+3,240+4,320) = Rs 11,880. 

While the employee whose basic pay is Rs 56,000 will get a DA arrear of 3 months (13,656 + 10,242 + 13,656)= Rs 37,554 

DA arrears to increase on the large pay scale 

Shiva Gopal Mishra said the figure may look low, but this calculation is based on the minimum basic salary. He said that level-13 employees with higher pay scales (Rs 1.23,100 to Rs 2,15,900) or level-14 employees have pay scales (Rs 1,44,200 to Rs 2,18,200), if calculated, lakhs of rupees will be paid to employees as DA arrears. 

Calculation on Pay Scale-14 :

January 2020-June 2020 (4% of 144200) X6 = Rs 34,608
July 2020-December 2020 (3% of 144200) X6 = Rs 25,956
January 2021-June 2021 (4% of 144200) X6 = Rs 34,608
TOTAL = Rs 95,172

January 2020-June 2020 (4% of 218200) X6 = Rs 52,368
July 2020-December 2020 (3% of 218200) X6 = Rs 39,276
January 2021-June 2021 (4% of 218200) X6 = Rs 52,368
TOTAL = Rs 14,4012

Therefore, if the government approves the DA arrears, a large amount of money will come to the central employees in their accounts by July. 

It is to be noted that TA, DA and other allowances are given to Central government employees as per the recommendations of the 7th Pay Commission. The notification also mentioned that the new orders for claiming TA on retirement will be effective from the date of issue of the order that is June 15, 2021.