As Central government employees and pensioners wait for an announcement on the hike of Dearness Allowance, it is being said that the Centre might declare a 4 per cent hike on the DA, according to report by CNBC TV 18.
Although there is no official announcement on the same, once the hike is announced, it is likely to be effective from July 1. It is believed that the long-awaited announcement will come in October. The 4 per cent hike in DA will lead to a huge salary hike for the Central government employees and there will be a current DA from 42 per cent to 46 per cent.
How is DA calculated?
The DA is calculated according to the percentage of the basic salary. The formula to calculate the central government employees is: Dearness Allowance percent = ((Average of AICPI(BASE Year 2001=100) for the past 12 months -115.76) / 115.76)* 100
How much salary will increase?
For an employee with a minimum basic salary of Rs 18,000, the current DA at 42 per cent pays a monthly increase of Rs 7,560. Once the DA hikes at 46 per cent this monthly increase will go up to Rs 8,640.
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