7th Pay Commission: Dearness allowance may increase during festive season, check how to calculate salary hike

New Delhi: Under the 7th Pay Commission, the Indian government approved an 11% hike in the Dearness Allowance (DA) and Dearness Relief (DR) for central government employees and pensioners. With the latest hike which is effective from July 2021, the dearness allowance and dearness relief have been increased from 17% to 28%. 

However, in what could be another piece of good news, central government employees and pensioners could receive another 3% increase in DA and DR. If reports are to be true, then central government employees will receive DA which would be equal to 31% of their basic salary. 

Previously, the dearness allowance was increased by 4% in January 2020, another 3% in June 2020, and 4% in January 2021. The central government has now started to roll out the DA hike starting from July 2021. Central government employees are now likely to get the 3% hike in DA for June 2021 under the 7th Pay Commission with their September 2021’s salary. 

Here’s how to calculate a salary hike 

Under the 7th Pay Commission Matrix, Level-1 employees receive salaries in the range of Rs 18,000 to Rs 56,900. This means that Central government employees receive a minimum basic pay of Rs 18,000. Also Read: One month’s salary as bonus, Rs 10 lakh lucky draw: Here’s how THIS Indian firm is making employees healthy

Considering Rs 18,000 as basic pay, we can easily calculate the hike including the speculated 3% September hike that will come with September’s salary. For that, all you need to do is calculate the 31% of 18,000. So, if your basic pay is Rs 18,000. You’ll receive a dearness allowance or dearness relief of Rs 5580. Also Read: iPhone 12 buyers get 2 years additional warranty on earpiece, Apple to repair phones for free