7th Pay Commission Latest News: Ahead of festive season, the Centre is likely to increase the Dearness Allowance of the government employees again. As per a report by Zee News, the central government employees and pensioners will receive another hike in dearness allowance (DA) and dearness relief (DR).Also Read - TCS, Infosys, Wipro, Other IT Giants Hiring Aggressively; Offering 120% Salary Hike, Bonus to Joinees. Here's Why
The report further stated that the Centre could announce a further 3% hike in the DA and DR. With the speculated hike, the DA will be increased to 31% of the basic salary. Also Read - 7th Pay Commission: Good News! Ajit Pawar Promises to Implement 7th Pay Commission for PMC Employees
On the other hand, the employees unions are expecting that the government will make the official announcement soon. Notably, the AICPI data suggests that DA is payable at a 31% rate, as the index for June 2021 increased by 1.1 points, reaching 121.7. Also Read - 7th Pay Commission: Big DA, Gratuity, Leave Cash Payment Benefits For Retired Central Government Employees; Details Here
The latest move from the Centre will help the central government employees to the great extent specially during the festive season. It must be noted that the Centre had in July restored the DA from 17% to 28%, with the hike applicable from the salary of July 2021 onwards. Moreover, the Centre also increased the House Rent Allowance (HRA) from 24% to 27%.
The latest hike in DA, which will be for the first half of 2021, is expected to be announced in the month of September. However, there hasn’t been any official update on when the government is actually planning to announce the increase in DA.
The report also suggested that the increased DA, if announced in September, will come with the salary of October. Employees unions, however, are of the opinion that the government should include the DA hike with September’s salary as well.
Here’s how to calculate the DA hike?
If the Centre increases dearness allowance by 3%, then DA will be fixed at 31% of the basic salary. As per the calculation, the Central government employees will need to find 3% or 31% of their basic pay to calculate the hike and total DA amount, respectively.
If an employee’s basic pay is Rs 20,000, then 3% of the salary would be Rs 600. So, the employee will receive Rs 600 more. Overall DA at 31% would be Rs 6200 in this scenario.