Dearness allowance: The road is now almost clear for Dearness Allowance (DA) of central government employees and pensioners. In this, one more step has been taken. The proposal for DA has been forwarded to the central cabinet. Zee Business has learnt through its sources that the files related to DA and DA hike has reached the Central Cabinet. The propsal is likley to get a go ahead.
The source have cited that the government nod will likley be given by the last week of September and the announcement on DA will come. The DA hike will likley be increased by 4 per cent. Currently the DA hike is 34 per cent. After the hike it will be 38 per cent.
DA hike to be increased second time in this year?
The central government announces DA hike twice in a year – once every six months. First in January and then in July. In January 2022, the DA hike was 3 per cent from 31 per cent to 34 per cent.
The hike is done based on the data by AICPI (All India Consumer Price Index). The increase is undertaken on the basis of this data.
52 lakh employees and 63 lakh pensioners to benefit
The DA hike for the period July-December 2022 will benefit 52 lakh employees and 63 lakh pensioners. The minimum basic salary in the 7th Pay Commission (7th CPC) is Rs 18000.
Calculation on minimum basic salary
1. Minimum Basic Salary of employee – Rs 18,000 per month
2. Current DA (34%) – Rs 6120 per month
3. New DA (38%) -Rs 6840 per month
4. Amount increased with new DA – Rs 6840- 6120 = 720 per month
5. Annual Salary increase – 720X12= Rs 8640
Calculation on Basic Maximum Salary
1. Minimum Basic Salary of employee – Rs 56900 per month
2. Current DA (34%) – Rs 19346
3. New DA (38%) – Rs 21622
4. Amount increased with new DA – Rs 21622-19346 = 2276 per month
5. Annual Salary increase – 2276 X12= Rs 27,312
