Calculation of DA - Rightsofemployees.com https://www.rightsofemployees.com Know Your Rights Tue, 04 Oct 2022 15:19:28 +0000 en-US hourly 1 https://wordpress.org/?v=7.0.4 https://www.rightsofemployees.com/wp-content/uploads/2018/01/cropped-emp1-32x32.png Calculation of DA - Rightsofemployees.com https://www.rightsofemployees.com 32 32 7th Pay Commission: Notification issued for increasing DA of government employees, understand the complete calculation in 5 points https://www.rightsofemployees.com/7th-pay-commission-notification-issued-for-increasing-da-of-government-employees-understand-the-complete-calculation-in-5-points/ Tue, 04 Oct 2022 21:05:18 +0000 https://www.rightsofemployees.com/?p=4934 The Department of Expenditure, Ministry of Finance has issued an office memorandum for the revised rates of dearness allowance to central government employees. According to this notification, the revised rates of dearness allowance will be applicable from July 1, 2022. Along with this, now another allowance is being considered to increase. According to the information, […]

The post 7th Pay Commission: Notification issued for increasing DA of government employees, understand the complete calculation in 5 points first appeared on Rightsofemployees.com.

]]> The Department of Expenditure, Ministry of Finance has issued an office memorandum for the revised rates of dearness allowance to central government employees. According to this notification, the revised rates of dearness allowance will be applicable from July 1, 2022.

Along with this, now another allowance is being considered to increase. According to the information, HRA hike can also be announced along with DA hike. Actually, with the increase in DA, revision in HRA is also expected.

Five important things of the notification issued by the government that the employees of the central government should know:-

1. New Rates

The rate of Dearness Allowance payable to Central Government employees has been increased from 34% to 38% of basic pay with effect from July 1, 2022. In other words, DA has been increased by 4%.

2. Calculation of DA on Basic Pay

For salary calculation under 7th Pay Commission, DA has to be calculated on the basic salary of the employee. Suppose the minimum basic salary of a central employee is Rs 25,000, then his dearness allowance will be 38% of 25,000. Basic pay does not include any other type of pay like special pay etc.

3. Dearness Allowance will not be treated as pay under

FR 9(21). As per the notification, Dearness Allowance will continue to be a distinct element of remuneration and will not be treated as pay within the scope of FR 9(21).

4. Understand Calculations

OM Accordingly, in payment of dearness allowance, fractions of 50 paise and above may be rounded off to the next higher rupee and fractions less than 50 paise may be ignored.

5. Separate orders will be issued for Railway, Defense personnel. Separate orders will be issued

by the Ministry of Railways and Ministry of Defense regarding the revised rate of Dearness Allowance for Armed Forces personnel and Railway employees. Dearness Allowance is given to the government employees of the Center and the states to improve their cost of living level. Even after rising inflation, the standard of living of the employee does not matter, so this allowance is a part of the salary structure. Dearness allowance (DA) is given to government employees, public sector employees dearnessand  relief to pensioners.

The post 7th Pay Commission: Notification issued for increasing DA of government employees, understand the complete calculation in 5 points first appeared on Rightsofemployees.com.

]]> Government has notified the increase in DA, know what are the 5 important things of the Office Memorandum https://www.rightsofemployees.com/government-has-notified-the-increase-in-da-know-what-are-the-5-important-things-of-the-office-memorandum/ Tue, 04 Oct 2022 19:59:02 +0000 https://www.rightsofemployees.com/?p=4930 7th Pay Commission Dearness Allowance Hike notification: Office Memorandum (OM) for the revised rates of Dearness Allowance to Central Government employees has been issued by the Department of Expenditure (DOE) of the Ministry of Finance on Monday, 3 October 2022. . DoE has stated in the Office Memorandum that the revised DA rate will be […]

The post Government has notified the increase in DA, know what are the 5 important things of the Office Memorandum first appeared on Rightsofemployees.com.

]]> 7th Pay Commission Dearness Allowance Hike notification: Office Memorandum (OM) for the revised rates of Dearness Allowance to Central Government employees has been issued by the Department of Expenditure (DOE) of the Ministry of Finance on Monday, 3 October 2022. . DoE has stated in the Office Memorandum that the revised DA rate will be applicable from July 1, 2022. Here we are telling you about 5 things of Office Memorandum.

1. New DA Rate

The rate of Dearness Allowance payable to Central Government employees has been increased from 34% to 38% of basic pay with effect from July 1, 2022.

2. Calculation of DA on Basic Pay

Dearness allowance is calculated on the basic pay. According to the recommendations of the Seventh Pay Commission, the government has got the basic pay at the prescribed level in the pay matrix. It does not include any allowance.

3. Dearness Allowance will not be treated as pay under FR9(21)

DA allowance has its own importance. It is not treated as salary within the purview of Fundamental Rule 9(21). This is different from the basic salary.

4. DOE said this in the Office Memorandum

DoE has said in the office memorandum that if 50 paise or more in dearness allowance comes in DA calculation, then it will be counted as Re 1. If 50 paise comes out, it will be seen as a fraction of less than 50 paise.

5. Separate order will come for Railways, Defense personnel

The revised DA rates for Armed Forces personnel and Railway employees will be issued separate orders by the Ministry of Railways and Ministry of Defence. The government had revised the DA rates in the last week of September. The rate of dearness relief for central government pensioners has also been increased to 38%.

The post Government has notified the increase in DA, know what are the 5 important things of the Office Memorandum first appeared on Rightsofemployees.com.

]]>