It was from July 1, 2021, that Central government employees, as well as pensioners, started to get their increased Dearness Allowance (DA). The Central government had only recently also increased the DA from 17% to 28%. However, there is another piece of good news for Central employees as the DA is all set to be increased by another 3% during the festive season. If this does happen, then DA will increase to 31%.
DA was increased by 4% in January 2020, then by 3% in June 2020, and by 4% in January 2021. Now, these three installments have to be paid. According to the data of AICPI, there is going to be a 3% increase in DA in June 2021 under the 7th Pay Commission. If this happens, then the total DA will increase to 31% which will be paid with the salary of September.
Salary hike calculation on basic pay
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. Meaning the minimum basic salary is Rs 18,000. If we base our calculations on the minimum salary, this is how much increase will be seen in September.
Calculation on 31% Dearness Allowance
Now if the Dearness Allowance increases by 3 percent in June, then the total DA will become 31%. Now on the basic salary of Rs 18,000, the total annual dearness allowance will be Rs 66,960. But talking about the difference, the annual increase in salary will be Rs 30,240.
- Basic salary of the employee Rs. 18,000
- New Dearness Allowance (31%) Rs.5580/month
- Old Dearness Allowance (17%) Rs.3060/month
- Calculate the difference: 5580-3060 = Rs.2520/month
- Increase in annual salary 2520X12 = Rs 30,240
