7th Pay Commission: Before Raksha Bandhan, there is good news for more than one crore employees and pensioners of the central government. The wait for the hike in their dearness allowance is almost over.
The central government may soon announce an increase in inflation for its employees and pensioners. This time dearness allowance is expected to increase by 4 percent. After this hike, DA will increase from 34 per cent to 38 per cent.
The dearness allowance of employees is increased twice a year in January and July. Till now the government has not increased the DA for July. In such a situation, it is expected that the government can increase the DA soon.
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The increase in DA is decided on the basis of All India Consumer Price Index (AICPI) in DA. This time in the month of June, the retail inflation rate has reached 7.01 percent. This inflation rate is higher than the RBI’s fixed inflation rate of 2 to 6 percent.
The minimum basic salary in the 7th Pay Commission is Rs 18,000 and at the level of cabinet secretary is Rs 56,900. According to 38 percent, on the basic salary of Rs 18000, the total increase in annual DA will be available in Rs 6840. Total DA will increase by Rs 720 per month. At the maximum basic salary bracket of Rs 56,900, the total increase in annual dearness allowance will be Rs 27,312. Those in this salary bracket will get Rs 2276 more as compared to 34 per cent.
Calculation on minimum basic salary
Basic salary of employee Rs 18,000
New Dearness Allowance (38%) Rs.6840/month
Dearness Allowance so far (34%) Rs 6120/month
How much dearness allowance increased 6840-6120= Rs.1080/month
Increase in annual salary 720 X 12 = Rs 8640
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Calculation on maximum basic salary
Basic salary of the employee Rs 56,900
New Dearness Allowance (38%) Rs 21,622/month
Dearness Allowance so far (34%) Rs 19,346/month
By how much dearness allowance increased 21,622-19,346 = Rs 2260/month
Increase in annual salary 2260 X12 = Rs 27,120
By increasing the dearness allowance of the government, 50 lakh employees and 65 lakh pensioners of the country will benefit as their salary will increase. At the beginning of the year, the government had increased the DA by 3 per cent, after which the dearness allowance had gone up to 34 per cent. Now due to increase in DA by 4 per cent, dearness allowance will increase to 38 per cent.
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