7th Pay Commission: DA hike will happen again? Check salary increase and more

The central government has already brought smiles to the faces of its employees by announcing that they are going to get their 28% Dearness Allowance (DA) from September. 

However, there is an update now. It is being said that the central government employees will get a 3% DA hike for the month of June which basically adds up to 31% instead of 28%.

Notably, the DA hike for the month of June has not been decided yet. The 3% DA hike has been assumed based on AICPI data for the month of January to May 2021. JCM Secretary (Staff Side) Shiv Gopal Mishra has revealed that this will be announced soon. 

It is important for central government employees to know about the pending DA hike. In January 2020, dearness allowance was increased by 4 percent, in June it was increased by 3 percent and then by 4 percent in January 2021. That is, in these three jumps, the dearness allowance has increased by a total of 11 percent and now it has reached 28%. Now after the increase of 3 percent in June, the dearness allowance will reach 31 percent (17+4+3+4+3).

The Central Government recently restored the pending DA hike for the last 18 months and central government employees and pensioners will be paid DA and DR at the rate of 28%. 

Based on the 7th Pay Commission matrix, the level-1 salary of central employees ranges between Rs 18,000 to Rs 56,900. Therefore, we will calculate the minimum basic salary of Rs 18,000 to see how much increase in the salary of September to the central employee.

Calculation on 28% Dearness Allowance

The total annual dearness allowance on the basic salary of Rs 18,000 will be Rs 60,480. But the difference of annual increase in salary will be Rs 23,760.

1. Basic salary of the employee: Rs. 18,000

2. New Dearness Allowance (28%): Rs.5040/month

3. Dearness Allowance so far (17%): Rs.3060/month

4. DA increased 5040-3060: Rs.1980/month

5. Increase in annual salary 1980X12: Rs 23760

Calculation on 31% DA

If the dearness allowance is increased by 3 percent in June, then the total DA of the employees will become 31 percent. That is, now on the basic salary of Rs 18,000, the total annual dearness allowance will be Rs 66,960. But talking about the difference, the annual increase in salary will be Rs 30,240.

1. Basic salary of the employee: Rs. 18,000

2. New Dearness Allowance (31%): Rs.5580/month

3. Dearness Allowance so far (17%): Rs.3060/month

4. How much dearness allowance increased 5580-3060: Rs.2520/month

5. Increase in annual salary 2520X12: Rs 30,240