New Delhi, October 27: Salary of central government employees, under the 7th Pay Commission, will increase considerably as the Centre has approved a hike of 3 percent in rate of dearness allowance. Central government employees will now get 31 percent of their basic pay as DA. The increased rate of DA would lead to significant rise in salary of central government employees. The hike in salary will vary based on basic pay. Here's how much your salary will increase. 7th Pay Commission: Good News Regarding DA, DR Arrears Likely Soon, PM Narendra Modi to Take Final Call.

As per the recommendations of the 7th Pay Commission, the basic salary of central government employees ranges from Rs 18,000 to a maximum of Rs 2,25,000. Based on the basic pay, their monthly and annual salary will increase. With the rate of DA at 31 percent, a central government employee, whose monthly basic pay is Rs 18,000, will receive a hike of Rs 540 in his/her monthly take-home salary. This means annual hike of Rs 6,480. Similarly, the monthly salary of an employee, whose monthly basic salary is Rs 2,25,000, will see an increase of Rs 6,750, meaning Rs 81,000 extra annually.

Monthly and Annual Salary Hike Calculation Based on 31% DA

If Basic Salary of Employee Is Rs 18,000:

  • Existing Dearness Allowance (28%) Rs 5040/month
  • New Dearness Allowance (31%) Rs 5580/month
  • Calculate the difference: 5580-5040 = Rs 540/month
  • Increase in annual salary 540X12 = Rs 6,480

If Basic Salary of Employee Is Rs 2,25,000:

  • Existing Dearness Allowance (28%) Rs 63,000/month
  • New Dearness Allowance (31%) Rs 69,750/month
  • Calculate the difference: 69,750 - 63,000 = Rs 6,750/month
  • Increase in annual salary 6,750 X 12 = Rs 81,000

By increasing the rate of DA and DR (dearness relief), the Centre has brought cheers to central government employees and pensioners ahead of Diwali. The increased rate of DA and DR will cost the exchequer Rs 9,488.70 crore annually.

(The above story first appeared on LatestLY on Oct 27, 2021 12:38 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website