Central employees and pensioners will start getting 28 per cent dearness allowance from September, but several reports also suggest that the government may soon approve of June's Dearness Allowance.
It is to be noted that the Centre is yet to finalise the DA hike for the month of June. But, it is clear from the AICPI data from January to May 2021 that Centre would approve a DA hike of 3% very soon and according to experts an announcement in this regard will be made soon. If the Centre decides to increase DA by 3% then the total DA of Central government employee will reach 31% and there will a significant increase in salary too. Notably, the current DA of Central government employee is 28%. The Centre recently increased the DA of Central government employees by 11%.
Dearness allowance was increased by 4 per cent in January 2020. Then there was an increase of 3 per cent in June 2020. Then, again in January 2021, it increased by 4 per cent. That is, dearness allowance has increased by a total of 11 per cent in these three surges and has now reached 28%. Now, if there an increase of 3 per cent in June, dearness allowance will reach 31 per cent (17+4+3+4+3).
Pay grade to increase salary
The Central Government has lifted the ban on freeze Dearness Allowance that was in place since the past last 18 months and has increased the DA of employees by 11 per cent, now central government employees and pensioners will be paid DA and DR at the rate of 28 per cent. Central employees and pensioners can estimate the salary hike according to their basic pay and grade.
How much salary will be increased? Here's the calculation:
According to 7th Pay Commission Matrix, the salary range of Level-1 of central employees ranges from Rs 18,000 to Rs 56,900. Means minimum basic salary is Rs 18,000. We will calculate on the minimum salary as to how much the central employee can see in the September salary.
The total annual dearness allowance on basic salary of Rs 18,000 will be Rs 60,480. But coming to the difference, the annual increase in salary will be Rs 23,760.
1. Basic salary of employee: Rs 18,000
2. New Dearness Allowance (28%): Rs 5040 a month
