In a good news for lakhs of Central government employees, the Centre is planning to once again hike the Dearness Allowance (DA) of its employees. It is to be noted that Central employees and pensioners are getting 28 percent DA from July 1 and the increase amount was paid with July salary.
But the Central government employees are now waiting for DA of June 2021. According to reports, Centre may soon release DA for June as well. If this happens, then the total DA will increase from 28 percent to 31 percent. This means that there will be a bumper jump in the salary of central government employees.
The DA for June 2021 has not been decided yet but it is clear from the AICPI June data that DA will increase by 3 percent. Some reports claimed that Centre would soon make an official announcement in this regard.
According to the 7th Pay Commission Matrix, the salary range of Level-1 Central government employees is from a minimum of Rs 18,000 to a maximum of Rs 56,900.
Calcualtion of salary on maximum basic salary
Calculation as per 31% DA
1. Basic salary Rs 56900
2. New DA (31%) Rs 17639 per month
3. Current DA(28%) Rs 15932 per month
4. Increase in DA Rs 17639-Rs 15932 = Rs 1707 per month
5. Annual hike in salary Rs 1707X12 = Rs 20484
According to 31 percent DA allowance, the total annual DA on the basic salary of Rs 56900 will be Rs 211,668. But, if we talk about the difference as compared to 28 percent, then the annual increase in salary will be Rs 20,484. However, the calculation of the final salary will be known after adding other allowances including HRA.
