Mumbai, September 28: The much awaited wait of Central Government employees for the hike in Dearness Allowance (DA) and Dearness Relief (DR) ended today, September 28 when the Centre announced the hike in DA. On Wednesday, the Narendra Modi-led cabinet announced a 4 percent DA and DR hike for central government employees. With the increase in DA hike, the DA and DR hike now stands at 38 percent from the previous 34 percent.

The Centre's decision to increase the DA and DR by 4 percent will benefit over 50 lakh government employees and around 65 lakh pensioners. It must be noted that the DA hike is given to government employees while the DR hike is give to pensioners. The Dearness Allowance and Dearness Relief of Central government employees were hiked on the recommendations of the 7th Pay Commission. 7th Pay Commission Latest News Today: Govt Likely To Revise Minimum Qualifying Service Required for Promotion of Employees; Check Details Here.

At present, Central government employees are receiving a DA of 34 percent. With the 4 percent hike in DA, if the basic pay of an employee is Rs 18,000 then the annual DA will increase to Rs 8640.

How Will Monthly and Annual Salary Will Increase With 4% DA Hike

With the 4 percent hike in DA, the monthly and annual salary of Central government employees will also increase. If an employee's basic salary is Rs 18,000 then the DA at 34 percent is Rs 6120 per month, however, with the new hike, the new DA at 38 per cent will be Rs 6840 per month. This clearly means that the monthly salary increase of the employee will Rs 720 per month while the Annual Salary increase will be Rs 8640.

Similarly, if the basic salary of an employee is Rs 31550, then the DA as per 38 percent will be Rs 11,989 per month which is more when compared to the 34 percent DA of Rs 10,727. An increase of 4 percent hike in DA means an increase of Rs 1262 every month and an annual increase of Rs 15,144.

Every year, DA and DR is hike twice - first in January and the second time in July. The last time the DA was hiked was when the Central government employees received a 3 percent DA hike in March 2022. Before that, the government employees were receiving a DA of 31 percent under the 7th Pay Commission recommendations.

(The above story first appeared on LatestLY on Sep 28, 2022 03:06 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website