The results of the five state elections are out. An impressive performance by BJP in assembly elections has helped it retain power in Uttar Pradesh, Uttarakhand, Manipur, and Goa, while Aam Aadmi Party (AAP) has snatched Punjab. Rejoiced by the Party’s performance, Central Government Employees & Pensioners are anticipating that PM Modi will announce a 3% hike in Dearness Allowance (DA).
Let us tell you, that a cabinet meeting is to be held on March 16, after which the Modi government can announce to increase the DA to 34% of the basic salary. If this happens, the salary of government employees and pensioners will also be increased.
Currently, this rate is at 31 percent. This decision of the Modi government will benefit more than 50 lakh government employees and more than 65 lakh pensioners.
At present, Central Government Employees get 31 percent DA. With the increase of 3 percent, the salary of government employees will increase up to a maximum of Rs 20,000 and a minimum of Rs 6480. DA of employees will increase to 34 percent.
According to the AICPI Index for the year 2001, the Consumer Price Index for Industrial Workers has decreased by one point for December 2021. The index average for dearness allowance of the last 12 months is 351.33. As a result, the Dearness Allowance is 34.04 percent based on this average index.
DA Calculation on Minimum Basic Salary
- Basic salary of employee: Rs 18,000
- New DA (34%) Rs 6120/month
- DA so far (31%) Rs 5580/month
- How much dearness allowance increased 6120- 5580 = Rs 540/month
- Increase in annual salary 540X12 = Rs 6,480
DA Calculation on Maximum Basic Salary
- Basic salary of the employee: Rs 56900
- New DA (34%) Rs 19346 / month
- DA so far (31%) Rs 17639 / month
- How much dearness allowance increased 19346-17639 = 1,707 Rs/month
- Increase in annual salary 1,707 X12 = Rs 20,484
