DA 7th Pay Commission: In a good news for employees, the central government has recently announced a hike in the Dearness Allowance and Dearness Relief under the 7th Pay Commission. The DA and DR for employees and pensioners were hiked by 3 per cent. With this, the government staff will get as much as 34 per cent DA with their salaries, the Centre said after a meeting of the Cabinet committee chaired by Prime Minister Narendra Modi.
“The Union Cabinet chaired by the Prime Minister, Shri Narendra Modi, has given its approval to release an additional instalment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners w.e.f. 01.01.2022 representing an increase of 3 per cent over the existing rate of 31 per cent of the Basic Pay/Pension, to compensate for price rise,” said the prime minister’s office in a press release.
The government also said the move will benefit over 47 lakh employees and over 68 lakh pensioners. “The combined impact on the exchequer on account of both Dearness Allowance and Dearness Relief would be Rs 9,544.50 crore per annum. This will benefit about 47.68 lakh Central Government employees and 68.62 lakh pensioners,” said the release. The hike will be effective from the salary of January 1, 2022, the government also said.
Since 2020, for one and a half years, the government had decided to freeze the DA and DR hike for its present and ex servicemen due to the impact of the Covid-19 pandemic. There has been no release of arrears yet.
DA Hike Under 7th Pay Commission: Dearness Allowance Doubled
This increase is in accordance with the accepted formula, which is based on the recommendations of the 7th Pay Commission, the Centre said.
After the current revision, the DA for central government employees has been hiked to 34 per cent. Up till July 2021, the rate of Dearness Allowance was 17 per cent, meaning that in the past six month, the allowance has been doubled for the servicemen. After July, the government had announced an 11 per cent DA hike, making it 28 per cent, following which a 3 per cent DA hike was announced.
How Much Salary Will Increase After DA Hike?
After the latest hike, central government employees will get a 34 per cent Dearness Allowance calculated by multiplying the current rate of DA by the base salary of the employee. Let us say that this calculation is done against the salary of an employee whose basic pay is Rs 18,000. At the rate of 31 per cent DA earlier, the employee was getting DA of Rs 5,580. After the latest hike, the employee will get DA of Rs 6,120. This means that an increase of Rs 540 has been made after the latest DA hike.
The government hikes DA every year in January and July to set off inflation.
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