The Central government employees who are for many months waiting for hike in their salary are likely to get good news this month. If latest media reports are to be believed, Dearness Allowance of the employees could by hiked by 4 percent in September and with this, the total DA could reach up to 38 percent.
Along with DA hike announcement, the Centre could also initiate the process of money transfer in September itself. Apart from the Dearness Allowance hike, employees may also get arrears for the months of July and August.
7th Pay commission: According to the sources of the associate website Zee Business, the formal announcement of Dearness Allowance will be done on 28 September i.e. on the third Navratri. The salary for September will come with a two-month arrear.The DA will be given from the month of July 2022 and onwards. The DA will be 38 per cent from 1 July 2022. The employees will also get DA arrear of two months.
What will be the increase in DA?
The government bases the data of AICPI-IW (All India Consumer Price Index- Industrial Worker) index to decide the Dearness Allowance of the employees. The figures for the first half of AICPI-IW have been released. The index has reached 129.2 in June. Due to the rapid increase in the index, an increase of 4 percent in DA is believed to be fixed.
The increased DA money will come on this date , after the increase of 4 percent in Dearness Allowance, the dearness allowance of central employees will become 38%. The increased dearness allowance will be paid in the salary of September 2022. It will be implemented from July 1. On the auspicious days of Navratri, paying it on behalf of the government will bring big money in the pockets of the employees.
How much will the DA become
if there is an increase of 4 percent in the dearness allowance, it will increase to 38 percent. At present, 34 percent dearness allowance is being given to the central employees by the government. With DA being 38 percent, there will be a good jump in salary. Let us see how much the minimum and maximum basic salary will increase with 4 percent DA?
Calculation on maximum basic salary
1. Basic salary of employee Rs 56,900
2. New dearness allowance (38%) Rs 21,622/month
3. Dearness allowance so far (34%) Rs 19,346/month
4. How much dearness allowance increased by 21,622-19,346 = Rs 2260/month
5. Increase in annual salary 2260 X12 = Rs 27,120
Calculation on minimum basic salary
1. Basic salary of employee Rs 18,000
2. New dearness allowance (38%) Rs 6840/month
3. Dearness allowance so far (34%) Rs 6120/month
4. How much dearness allowance increased 6840-6120 = Rs.1080 /month
5. Increase in annual salary 720X12= Rs.8640
KINDLY NOTE: However, the Central Government has not yet officially cleared any proposal for Dearness Allowance (DA) hike effective from 1 July 2022. The Central government employees must be knowing that the Dearness Allowance is revised twice a year – the first is given from January to June and the second comes from July to December.