New Delhi, October 21: Ahead of Diwali, the Union Cabinet today approved another hike of 3 percent in the rate of dearness allowance (DA) given to central government employees under the 7th Pay Commission. Accordingly, central government employees will get 31 percent of their basic pay as DA. The increased rate of DA will come into effect from July 1, 2021, said Union Minister Anurag Thakur. Below is the method of calculation to know how much your salary will increase. 7th Pay Commission: Good News Regarding DA, DR Arrears Likely Soon, PM Narendra Modi to Take Final Call.

Following the increase of 3 percent in the rate of DA, monthly and annual salary of central government employees, under the 7th Pay Commission, will rise substantially. There will be monthly hike up to Rs 6,750 in salary of central government employees, based on their basic pay, as the rate of DA is now fixed at 31 percent. Similarly, annual salary of central government employees will see a hike between Rs 6,480 and Rs 81,000.

DA, DR Hiked by 3 Percent:

A central government employee, whose basic pay is Rs 18,000 per month, will now get a monthly hike of Rs 540 in his/her take home salary. The monthly hike of Rs 540 will translate into annual hike of Rs 6,480. Similarly, an employee whose monthly basic income is Rs 2,25,000 will receive monthly hike of Rs 6,750 in his salary, meaning Rs 81,000 extra annually.

Here's How Much Your Monthly and Annual Salary Will Increase With 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

Retired central government employees will also get 31 percent of their basic pension as dearness relief (DR) with effect from July 1, 2021. According to the government, the increased rate of DA and DR will cost the exchequer Rs 9,488.70 crore annually. More than 48 lakh employees and over 68 lakh pensioners will be benefited.

(The above story first appeared on LatestLY on Oct 21, 2021 03:45 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website