7th Pay Commission: After receiving the big gift of 4% DA hike from the government, Central employees and pensioners are busy in calculating their hiked salary. The central government on March 24 has increased the DA and DR of over 1 crore employees and pensioners amid the ongoing festivals of Navaratra and Ramazan. The DA and DR have increased to 42 percent from 38 percent.
Also, this increase has come into effect from January 2023 itself. That is, where their increased salary will come for the month of March, on the other hand, these people will also get arrears for two months, January and February. That is, central employees and pensioners will get the arrears of January and February along with the salary of March.
With the announcement of this hike by the Central Government, there has been a substantial increase in the salary of 47.58 lakh employees and pension of 69.76 lakh pensioners. At the same time, due to this increase, the financial burden on the central government has increased by Rs 12,815 crore every year.
Dearness allowance and dearness relief are calculated on the basis of basic salary and pension. For example, if a pensioner’s basic pension is Rs 25,200 and he was getting Rs 9,576 as dearness relief @ 38 per cent. At the same time, when the DR is 42 per cent, Rs 10,584 will be given as dearness relief. That means there will be an increase of Rs 1008 every month, while there will be an annual benefit of Rs 12096.
Calculation on basic pension 25,200
- Basic pension Rs 25,200
- New Dearness Allowance (42%) Rs 10,584/month
- Dearness Allowance till now (38%) Rs 9,576/month
- How much dearness allowance increased 10584-9576 = Rs 1008/month
- Increase in annual salary 720X12 = Rs 12096
At the same time, according to 38 percent of the employees with minimum range (18,000) salary, they are getting monthly DA of Rs 6840, which has increased to Rs 7560 according to 42 percent. Means Rs 720 per month and Rs 8640 per year has been benefited.
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Calculation on minimum basic salary of Rs 18,000
Employee’s basic salary Rs 18,000
New Dearness Allowance (42%) Rs.7,560/month
Dearness Allowance till now (38%) Rs.6,840/month
How much dearness allowance increased 7,560-6840 = Rs 720/month
Increase in annual salary 720X12= Rs 8,640
On the other hand, if we talk about the employees with the maximum salary range (56,900), then they will get the benefit of Rs 2276 monthly and Rs 27312 annually.
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Calculation on maximum basic salary of Rs.56900
Employee’s basic salary Rs 56900
New Dearness Allowance (42%) Rs 23898/month
Dearness Allowance till now (38%) Rs 21622/month
How much dearness allowance increased 23898-21622 = Rs 2276/month
Increase in annual salary 2276X12 = Rs 27312
DA revision happens twice a year.
The government increases the DA of the employees every six months. The hike in Dearness Allowance and Dearness Relief (7th Pay Commission) is announced on the basis of AICPI data released by the Ministry of Labour. That is, on the basis of AICPI-IW data, allowance is given to the employees by calculating inflation. DA and DR have revision every 6 months. Normally, dearness allowance for January is announced before Holi in March and that of July is announced before Diwali in September-October.
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