seventh Pay Commission: In what comes as a chunk of stories to cheer for central authorities staff, the federal government might announce a hike in Dearness Allowance (DA) by the top of this month, which is able to result in an enormous bounce of their wage.
More than 1 crore central staff and pensioners will probably be benefited from the federal government announcement anticipated by the month-end, Zee News reported. It is believed that the federal government might switch the cash of the elevated DA hike and arrears of the final two months together with the March wage. An enhance in 3 per cent DA implies that the entire DA of Central authorities staff will probably be 34 per cent. It means a Central Government worker with a primary wage of Rs 18,000 will obtain an annual dearness allowance of Rs 73,440. If the dearness allowance is elevated to 34 per cent, then the wage will come from Rs 73,440 to Rs 2,32,152 20 thousand.
What is DA and What we Know so Far?
Dearness Allowance is a element of the wage of presidency staff and pensioners. To deal with the rising inflation, the central authorities revises DA and DR advantages twice yearly – in January and July. DA varies from worker to worker based mostly on whether or not they work within the city sector, semi-urban sector, or the agricultural sector.
The authorities’s final transfer had benefitted early 48 lakh central authorities staff and 65 lakh pensioners throughout India when it hiked DA in October.
As of now, central authorities staff are paid a Dearness Allowance of 31 per cent. The most up-to-date hikes got in July and October 2021, after a months-long freeze within the allowance as a result of Covid-19 pandemic. The Union Cabinet in October had hiked dearness allowance and dearness reduction by 3 per cent to 31 per cent to learn 47.14 lakh Central Government staff and 68.62 lakh pensioners.
DA Hike of three per cent Expected
According to media studies, the central authorities can announce to extend DA by 3 per cent. A hike of three per cent may result in a rise in salaries of presidency staff by as much as Rs 20,000. Under the seventh Central Pay Commission, the DA of presidency staff is calculated on the idea of primary pay. The present DA fee stands at 31 per cent, after a hike of three per cent in October and 11 per cent in July.
The announcement of hike in dearness allowance (DA) may be carried out by the top of March. The DA was elevated by 3 per cent in January 2022, taking the entire DA to the staff from 31 per cent to 34 per cent. As per AICPI information, DA has reached 34.04 per cent until December 2021. The DA on the essential pay of Rs 18,000 after 3per cent enhance in allowances will probably be Rs 73,440 every year.
Calculation on Minimum & Maximum Basic Salary
If Basic Salary of Employee is Rs 18,000
– New DA (34 per cent) Rs 6120/month
– DA thus far (31 per cent) Rs 5580/month
– How a lot dearness allowance elevated 6120- 5580 = Rs 540/month
– Increase in annual wage 540X12 = Rs 6,480
If Basic Salary of the Employee is Rs 56900
– New DA (34 per cent ) Rs 19346 / month
– DA thus far (31 per cent) Rs 17639 / month
– How a lot dearness allowance elevated 19346-17639 = 1,707 Rs/month
– Increase in annual wage 1,707 X12 = Rs 20,484