Good News: More Than 1 Crore Employees & Pensioners To Get 34% DA Hike & Salary Increment Up to Rs 90,000
Central government employees are likely to receive an increment in Dearness Allowance (DA) before Holi. The government will reportedly increase the DA by 3 percent and which will be effective from January 1, 2022. According to a Moneycontrol.com (Hindi) report, the increased salary, along with arrears for January and February, will be paid to the employees in March.
7th Pay Commission: Central government employees could hear bumper good news by the end of March. As per reports in the media, the central government may announce hike in Dearness Allowance (DA) by the end of this month, that will lead to a big jump in their salary.
More than 1 crore central employees and pensioners will be benefited from the government announcement expected by the month end. In the month of March, the government can announce to increase the Dearness Allowance of Central Government employees by 3 percent. Thus the current Dearness allowance of 31 percent will be hiked to 34 percent. As per a report in Zeebiz.com, this will mean central government’s salary will be hiked upto Rs 90,000. The reports related to hike in DA gained further steam after the AICPI data that was released in December.
Union Cabinet Approved Recommendations of the 7th Pay Commission:
The Union Cabinet had in June 2017 approved recommendations of the 7th Pay Commission with 34 modifications. The new scales of pay provided for entry-level basic pay going up from Rs 7,000 per month to Rs 18,000. For Class 1 officers, the starting salary was at Rs 56,100; while at the highest level i.e. Secretary, went up from Rs 90,000 to Rs 2.5 lakh.
Hike of Rs 90,000 in Salary:
According to JCM Secretary Shiv Gopal Mishra, the employees of central government should be paid in line with inflation. The position with the arrears has yet to be clarified by the administration. If a 3% DA is issued in this situation, it is undoubtedly a source of relief. If an employee’s basic wage is Rs 30,000 per month, their salary will rise by Rs 900 each month. Their gross salary will rise by Rs 10,800 on a yearly basis. Cabinet secretary level officers will have a pay raise of Rs 7500 per month. The maximum monthly income is Rs 2.5 lakh, and they would receive an annual benefit of Rs 90,000.
To calculate to new DA applicable to central government employees and pensioners:
The DA is calculated by multiplying the current rate of dearness allowance by the base wage. DA with effect from 1st January 2022 =[(340+343+344+346+347+350+354+354+355+360+362+361)/12]-(261.4)X100/261.4]