7th Pay Commission: Cabinet approves 28% DA, check how much your salary will increase

The central government had increased the dearness allowance by 4 per cent in January 2020, 3 per cent in June 2020 and 4 per cent in January 2021.

New Delhi: More than 1.2 crore central employees and pensioners have been waiting for the restoration of increased Dearness Allowance (DA) and Dearness Relief (DR) for a long time. However, the wait is finally over, as the Central government has reportedly decided to restore the increase in the allowance in a cabinet meeting led by Prime Minister Narendra Modi on Wednesday (July 14). 

Central government employees currently get a dearness allowance at the rate of 17 per cent. However, employees will now get a DA at 28 per cent of their basic pay.

How to calculate DA hike? 

The central government had earlier increased the dearness allowance by 4 per cent in January 2020, 3 per cent in June 2020 and 4 per cent in January 2021. According to the calculations, the total hike will become 28 per cent (17+4 +3+4). 

So, if an employee earns Rs 20,000 basic salary per month, his or her salary will increase by 11 per cent, which will be a hike of Rs 2200. You can similarly calculate your salary hike based on your basic pay.  

No decision on July 2021 DA hike

The Ministry of Labor has previously stated the figures of the All India Consumer Price Index for May 2021. The index for May 2021 increased by 0.5 points, taking it to 120.6. For those uninitiated, the index needs to be above the 130 mark for DA to increase by 4 per cent. The data for June is currently awaited. Also Read: Wholesale inflation eases to 12.07% in June as food, crude prices soften

If you add the speculated hike of 3 per cent in July 2021, then the total DA will stand at around 31 per cent of your basic salary. However, the government is yet to take a final decision on the DA hike for the month of July. Also Read: Wait is over! Revolt RV400 bookings re-open on July 15, here’s how to book yours