7th Pay Commission: Central govt employees' salary to surge by more than Rs 20,000 in New Year; Details here

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