New Delhi, September 1: There could be a hike in salary of central government employees, who get paid under the 7th Pay Commission or 7th CPC. If reports are to be believed, the Centre is likely to increase the rate of dearness allowance or DA soon, which would certainly hike the salary of the central government employees, under the 7th Pay Commission. However, there is no official announcement regarding the DA rate hike. 7th Pay Commission Latest News Today: DA Hiked to 28%, Here's How Much a Central Government Employee's Salary Will Increase.
Currently, under the 7th Pay Commission, central government employees get 28 percent of their basic pay as dearness allowance. The DA rate is usually increased twice every year. This year, however, the increase in DA rate happened only once. There was an increase of 4 percent in DA rate in January. The increment came into effect from July 1. Several media outlets have reported that another hike in DA rate would be announced in the last quarter of the year. 7th Pay Commission Latest News Today: HRA Increased After DA Hike, Say Reports; Know Revised Rates Here.
These reports also said that a hike of 3 percent is likely in the DA rate. If the DA rate is increased by 3 percent, the central government employees would receive 31 percent of their basic pay as DA under the 7th Pay Commission.
Here's How Much Your Salary Will Increase If DA Hiked to 31%
- Basic salary of the employee Rs 18,000
- New Dearness Allowance (31%) Rs 5580/month
- Existing Dearness Allowance (28%) Rs 5040/month
- Calculate the difference: 5580-5040 = Rs 540/month
- Increase in annual salary 540X12 = Rs 6,480
- Basic salary of the employee Rs 56,900
- New Dearness Allowance (31%) Rs 17,639/month
- Existing Dearness Allowance (28%) Rs 15,932/month
- Calculate the difference: 17,639 - 15,932 = Rs 1,707/month
- Increase in annual salary 1,707 X 12 = Rs 20,484
According to a DNA report, the All India Consumer Price Index (AICPI) reached 120.6 after an increase of 0.5 points in the index for May 2021. The Ministry of Labour is yet to release the data for June 2021. If the AICPI touches 130 in June, a hike of 4 percent in DA rate may be announced. But it is highly unlikely for the AICPI to jump 10 points in a month, hence, a 3 percent hike in DA rate seems more likely.
(The above story first appeared on LatestLY on Sep 01, 2021 12:26 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).