- News>
- Personal Finance
7th Pay Commission: Central govt employees` salary to surge by more than Rs 20,000 in New Year; Details here
Aside from the DA increase, reports indicate that some Central government personnel will be promoted in the New Year.
Highlights
- Aside from the DA increase, reports indicate that some Central government personnel will be promoted in the New Year.
- Experts estimate that if the dearness allowance rises by 3% in January 2022, the total DA will rise from 31% to 34%.
- After raising the dearness allowance by 3%, the total DA will be 34%.
New Delhi: Employees of the Central Government who have been waiting for a pay raise would be happy to hear this. According to sources, their Dearness Allowance will be increased in January 2022. The salary of government employees would rise again as a result of the increase in DA. However, the amount by which the Dearness Allowance will be enhanced in January 2022 has yet to be determined. However, according to the AICPI index, DA is predicted to rise by 3% in the New Year.
Aside from the DA increase, reports indicate that some Central government personnel will be promoted in the New Year. Furthermore, prior to Budget 2022, there are discussions about the fitting factor. A decision on this is also expected to be made soon. If this occurs, the minimum basic salary for central government employees will be raised as well.
Experts estimate that if the dearness allowance rises by 3% in January 2022, the total DA will rise from 31% to 34%. The enhanced DA will be paid beginning in January 2022, and central employees' salaries will be adjusted correspondingly.
After raising the dearness allowance by 3%, the total DA will be 34%, resulting in a total yearly dearness allowance of Rs 73,440 on a basic salary of Rs 18,000. However, when it comes to the difference, the annual income rise will be Rs 6,480. As an example, consider the following calculation:
Calculation on minimum basic salary
Basic salary of employee Rs 18,000
New dearness allowance (34%) Rs 6120/month
Dearness allowance so far (31%) Rs 5580/month
How much dearness allowance increased 6120- 5580 = Rs 540/month
Increase in annual salary 540X12 = Rs 6,480
Calculation on maximum basic salary
Basic salary of the employee Rs 56900
New dearness allowance (34%) Rs 19346 / month
Dearness allowance so far (31%) Rs 17639 / month
How much dearness allowance increased 19346-17639 = 1,707 Rs/month
Increase in annual salary 1,707 X12 = Rs 20,484
#mute