New Delhi, October 12: Central government employees, who get paid as per the 7th Pay Commission recommendations, will get a hike up to Rs 81,000 in salary if the rate of dearness allowance (DA) is increased by 3 percent. Currently, the rate of DA is 28 percent under the 7th Pay Commission. Multiple reports say the Centre is likely to increase the DA rate by 3 percent. If it happens, central government employees would get 31 percent of their basic salary as DA. 7th Pay Commission: Good News Likely for Central Govt Employees Before Diwali 2021, DA Rate To Be Hiked This Month.

Following 3 percent hike in the DA rate, annual salary of central government employees, under the 7th Pay Commission, will see a hike between Rs 6,480 and Rs 81,000 based on their basic pay. Here it be noted that the basic salary of central government employees, under the 7th Pay Commission, ranges from Rs 18,000 to a maximum of Rs 2,25,000. Below is the method for calculation to know how much salary of central staffers will increase if the DA rate is set at 31 percent. 7th Pay Commission: Good News Regarding DA, DR Arrears Likely Soon, PM Narendra Modi to Take Final Call.

Here's How Much Your Salary Will Increase With 31% DA Rate

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

The All India Consumer Price Index (AICPI) reached 121.7 points in June 2021. "Accordingly, dearness allowance will be 31.18 per cent, but, the calculation of DA is done in the round figure," a report by DNA said, adding that hence 3 percent hike in the DA rate expected. Notably, the rate of DA is usually hiked twice - in January and July - every year. However, it has been done just once this year. Therefore, central government employees are hopeful for another hike.

(The above story first appeared on LatestLY on Oct 12, 2021 11:43 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website