7th Pay Commission: Finally, the good news for the central employees has come, which they were waiting for. Dearness allowance of central employees is going to increase from July 1. The dearness allowance of the employees will now be 37% directly.
7th Pay Commission: Finally, the good news for the central employees has come, which they were waiting for. Dearness allowance of central employees is going to increase from July 1. The dearness allowance of the employees will now be 38% directly. They will see the benefit of this increase in the form of a bumper increase in salary. Let us know how much the salary will increase.
Then dearness allowance will increase!
The Dearness Allowance Hike of the employees can be increased in July amid the ever-increasing inflation. It has been decided from the All India Consumer Price Index (AICPI) which came in March that dearness allowance may increase at the rate of 4% in July-August.
What do the figures say?
It is worth noting that there was a fall in the AICP Index for January and February 2022. Where the AICP index figure was at 125.1 in January, it was at 125 in February, while in March it increased by 1 point to 126. The numbers for April-May and June are yet to come. If this figure goes above 126, then the government can increase the DA by 4%.
How much will the salary increase?
If the government increases DA by 4%, then the DA of central employees will increase from 34% to 38%. Now let us see here how much there will be an increase in the maximum and minimum basic salary.
Calculation on maximum basic salary
1. Basic salary of employee Rs 56,900
2. New dearness allowance (38%) Rs 21,622/month
3. Dearness allowance so far (34%) Rs 19,346/month
4. How much dearness allowance increased by 21,622-19,346 = Rs 2,276/month
5. Increase in annual salary 2,276X12 = Rs 27,312
Calculation on minimum basic salary
1. Basic salary of employee Rs 18,000
2. New dearness allowance (38%) Rs 6840/month
3. Dearness allowance so far (34%) Rs 6120/month
4. How much dearness allowance increased by 6840-6120 = Rs 720/month
5. Increase in annual salary 720 X12 = Rs 8,640
