In what comes as a belated Holi gift to central government employees, the Dearness Allowance (DA) and Dearness Relief (DR) was hiked by the Union Cabinet on Wednesday by 3 percent. This takes DA and DR to 34%, in a move that will benefit more than 1.16 crore central government employees and pensioners.
As per the official press release after the Cabinet meeting, the additional instalment will be effective from January 1, 2022. “This increase is in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission,” it said.
The good news brings extra salary to central government employees. An increase in 3% DA means that the total DA of Central government employees will now be 34%. As per this, a Central government employee having a basic salary of Rs 18,000 will receive an annual DA of Rs 73,440.
Check out the calculation below:
Minimum basic salary calculation after 3% hike
- Basic salary: Rs 18,000
- DA after hike (34%) Rs 6120/month
- DA before hike (31%) Rs 5580/month
- Increase in DA - 6120- 5580 = Rs 540/month
- Increase in annual salary - 540X12 = Rs 6,480
Maximum basic salary calculation after 3% hike
- Basic salary: Rs 56900
- DA after hike (34%) Rs 19346 / month
- DA before hike (31%) Rs 17639 / month
- How much DA after increase - 19346-17639 = 1,707 Rs/month
- Increase in annual salary - 1,707 X12 = Rs 20,484
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The move will benefit around 47.68 lakh central government employees and 68.62 lakh pensioners.
(With inputs from agencies)
