7th Pay Commission: Salary of central employees will increase after 10 days, understand the calculation of increase

This month, the wait for the increase in Dearness Allowance (DA Hike) and Dearness Relief (DR Hike) of the employees will end. On the occasion of Navratri, they can get a big gift of increase in DA (Dearness Allowance) and DR (Dearness Relief). According to the information, this time the government can increase the dearness allowance by a total of 4 percent.

Cabinet meeting on September 28 under the chairmanship of PM Modi

Significantly, this year Navratri is starting from 26th September. Dussehra is on 5th October. On the third day of Navratri, on 28 September 2022, a cabinet meeting is going to be held under the chairmanship of Prime Minister Modi. In this meeting, the government can give a green signal to increase the dearness allowance of central employees.

Dearness Allowance will increase from 34 to 38 percent

If this happens, from October 1, the dearness allowance of central employees and pensioners will increase from 34 to 38 percent. At the same time, these people can also get the arrears money for the two months of July and August in October. It is noteworthy that the Dearness Allowance of Central Government employees is revised twice a year. The first is given from January to June, while the second comes from July to December. Let us tell you that the AICPI index plays an important role in deciding the dearness allowance of central employees.

Dearness Allowance increases on the basis of AICPI index

After February, there is a continuous jump in the AICPI index. The figure of the AICPI index was 125.1 in January 2022, which came down to 125 in February. Whereas in March it reached 126 points. After this, in April it rose to the level of 127.7. In May it reached 129 points, while in June it reached 129.2 points. This has raised the expectation that the DA of central employees may increase by up to 4 percent.

Employees will benefit so much

The minimum basic salary is Rs 18,000 in the 7th Pay Commission (7th Pay Commission) and Rs 56900 at the level of cabinet secretary. According to 38 percent, on the basic salary of Rs 18000, the total increase in annual DA will be available in Rs 6840. Total DA will increase by Rs 720 per month. At the maximum basic salary bracket of Rs 56,900, the total increase in annual dearness allowance will be Rs 27,312. Those in this salary bracket will get Rs 2276 more as compared to 34 per cent.

Calculation on minimum basic salary

  • Basic salary of employee Rs 18,000
  • New Dearness Allowance (38%) Rs.6840/month
  • Dearness Allowance so far (34%) Rs 6120/month
  • How much dearness allowance increased 6840-6120= Rs.1080/month
  • Increase in annual salary 720 X 12 = Rs 8640 

Calculation on maximum basic salary

  • Basic salary of the employee Rs 56,900
  • New Dearness Allowance (38%) Rs 21,622/month
  • Dearness Allowance so far (34%) Rs 19,346/month
  • By how much dearness allowance increased 21,622-19,346 = Rs 2260/month
  • Increase in annual salary 2260 X12 = Rs 27,120

More than one crore people will benefit

Significantly, 50 lakh employees and 65 lakh pensioners of the country will benefit from the increase in dearness allowance by the central government. At the beginning of the year, the government had increased the DA by 3 per cent, after which the dearness allowance had gone up to 34 per cent. Now due to increase in DA by 4 percent, dearness allowance will increase to 38 percent.