7th Pay Commission: Big Update! More Than 48 Lakh Employees & 68 Lakh Retirees To Get DA Benefit | Check Here

7th Pay Commission: Big Update! More Than 48 Lakh Employees & 68 Lakh Retirees To Get DA Benefit | Check Here

 

 

 

There is good news for the Central Government Employees. As the employees are likely to receive pay hike after Holi, i.e., in March, the Central Government is expected to announce an increase in DA for employees and retirees in the near future. Simultaneously, the DA Arrears money, which has been pending for 18 months, is expected to be received on or after Holi.

More than 48 lakh employees and 68 lakh retirees will benefit from the hike in DA. The government is expected to make an announcement before the next election. If the government decides to hike the fitment factor, it will increase the minimum wages of government employees. These employees have been, for long, demanding an increase in fitment factor from 2.57 times to 3.68 times.

In case the government increases the fitment factor to 3.68 percent, employees’ minimum salary will go up to Rs 26,000 from Rs 18,000. Currently, central government employees get their salary based on the fitment factor of 2.57 percent under the 7th Pay Commission. Fitment factor is used to calculate central government employees’ basic pay.

The Central Government and the employees have been arguing for a long time on the reinstatement of the pending DA. However, no final decision has yet been made. The subject is expected to be discussed with the Cabinet Secretary in the coming days.

Calculation of Hike: 

An increase in 3% DA means that the total DA of Central government employees will be 34%. It means a Central government employee with a basic salary of Rs 18,000 will receive an annual dearness allowance of Rs 73,440. See calculation below:

  • Basic salary of employee: Rs 18,000
  • New DA (34%) Rs 6120/month
  • DA 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 DA (34%) Rs 19346 / month
  • DA 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

Current Dearness Allowance (DA) Increase:

According to media reports, the Dearness Allowance (DA) hike announcement could take place by the end of March. In January 2022, DA was increased by 3%, bringing the total DA received by employees to 34% from 31%. According to AICPI data, DA has reached 34.04% until December 2021. After a 3% increase in allowance, the DA on a Rs 18,000 basic salary will be Rs 73,440 per year

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