7th Pay Commission DA Hike: The Modi government at the Center has given the biggest good news to the government employees today. After the cabinet meeting, PM Modi has announced to increase the Dearness Allowance (DA) of the employees by 3 percent. That is, now government employees will get Dearness Relief (DA) at the rate of 34 percent. This increase will be considered as applicable from January 1, 2022 i.e. employees will also get DA arrears for the months of January and February in the salary of March.
Will get 2 months DA arrears
The Modi government has implemented an increase in 3% DA from January 1, 2022. That is, DA arrears for the months of January and February will come in the salary for the month of March. DA will be available in the month of March at the rate of 34 per cent. Modi government has given good news to the government employees today. After the cabinet meeting, the PM announced to increase the DA of government employees by 3 percent to 34 percent.
Take a look at past DA hikes
In July, 2021, the Center increased dearness allowance and dearness relief from 17 per cent to 28 per cent. The central government had stopped DA for almost one and a half years due to the coronavirus pandemic. DA for central government employees increased to 31 per cent in October 2021 with a further hike of 3 per cent. The revised DA for central government employees has come into effect from July, 2021. Dearness relief for central government pensioners was also increased to 31 per cent with effect from July 1, 2021.
Salary will increase so much – this is the complete calculation
A central government employee who gets Rs 18,000 per month will get a 3 per cent hike in his take-home pay. With 34 per cent DA, his salary will increase by Rs 6,120 per month. In March, arrears of two months i.e. Rs 12,240 will also come. Since, dearness allowance is linked to the basic pay, the increase in DA will also increase the monthly provident fund (PF) and gratuity amount of central government employees. So, PF, Traveling Allowance and Gratuity will increase for employees and pensioners.
How is DA calculated?
Dearness Allowance is a component of the salaries of government employees and pensioners, with the aim of mitigating the effects of inflation. The effective salary of government employees is revised from time to time to deal with the rising inflation rate. DA is revised twice every year – in January and July. Since DA is related to cost of living, it varies from employee to employee. It depends on whether they live in an urban area, work in a semi-urban area or a rural area.
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