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7th Pay Commission: Good news for Central govt employees, DA may increase by 3% this month

The data of the AICPI index is out and the index has reached 121.7. In such a situation, the DA for June 2021 is set to increase by 3%.

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7th Pay Commission: Good news for Central govt employees, DA may increase by 3% this month
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7th Pay Commission: Employees who have been waiting for dearness allowance (DA) for a long time have started getting DA and dearness relief (DR) for pensioners at 28 per cent from July 1. The Central Government has increased Dearness Allowance i.e. DA from 17% to 28%.

Meanwhile, now there is another good news for the employees that before Diwali, 3% dearness allowance is expected to increase further. If this happens, then the total dearness allowance will be 31%. That is, this Diwali can already bring happiness to the employees.

The employees union is demanding that the government should soon announce an increase of 3% dearness allowance so that the employees can get some relief from inflation. The data of the AICPI index is out and the index has reached 121.7. In such a situation, the dearness allowance for June 2021 is set to increase by 3%. The index for June 2021 has increased by 1.1 points, taking it to 121.7.

Accordingly, dearness allowance will be 31.18 per cent, but, the calculation of DA is done in the round figure.

If the dearness allowance increases by 3 per cent in June, then the total DA will become 31 per cent. According to the 7th Pay Commission Matrix, the salary range of Level-1 of central employees ranges from Rs 18,000 to Rs 56,900. Now at the rate of 28% on the basic salary of Rs 18,000, the monthly dearness allowance is Rs 5040, at 31% it will increase to Rs 5580. Accordingly, the increase in annual salary will be Rs 6,480.

Let us calculate the hike in salary.

1. Basic salary of the employee Rs. 18,000
2. New Dearness Allowance (31%) Rs.5580/month
3. Dearness Allowance so far (28%) Rs.5040/month
4. How much dearness allowance increased 5580-5040 = Rs 540/month
5. Increase in annual salary 540X12 = Rs 6,480

Now let's see the maximum basic salary of this calculation Level-1 at Rs 56,900.

1. Basic salary of the employee Rs 56,900
2. New Dearness Allowance (31%) Rs 17,639/month
3. Dearness Allowance so far (28%) Rs 15,932/month
4. Increase in dearness allowance = Rs 17,639-Rs 15,932 = Rs 1,707/month
5. Increase in annual salary 1707X12 = Rs 20,484

That is, the increase in annual salary will be Rs 20,484. However, it does not include HRA. The final salary will be made only after adding HRA.

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