The central government has again hiked the Dearness Allowance (DA) & Dearness Relief (DR) by 3% to 31%. This move brings cheers for about 47.14 lakh central government employees & 68.62 lakh pensioners. This additional 11% DA, which was announced earlier in July, was for the period from January 2020- to January 2021. The latest 3% hike is for the period of July 2021 to January 2022.
Worth mentioning here is that the 7th Pay Commission guidelines, dearness allowance is paid as the component of salary & it gets revised twice in a year – in January & in July.
“The Union Cabinet, chaired by Prime Minister Narendra Modi, h has approved to release an additional installment of Dearness Allowance to the Central Government Employees & Dearness Relief (DR) to the pensioners w.e.f.1.7.2021 representing an increase of 3% over the existing rate of 28% of Basic Pay/Pension, to compensate for the price rise.
This increase is in accordance with the accepted formula, which is based on recommendations of the 7th Pay Commission. The combined impact on the exchequer on account of both Dearness Allowance & Dearness Relief would be Rs 9, 488.70 crore per annum. This will benefit around 47.14 lakh Central Government Employees & 68.62 lakh pensioners”.
While giving further details, Anurag Singh Thakur said that the hike will be in effect from the month of July 1, 2021. However, the combined impact on the exchequer on account of both Dearness Allowance & Dearness Relief would be Rs 9, 488.70 crores per annum.
It may be called that Cabinet Committee chaired by Prime Minister Narendra Modi had in the month of July has approved to increase the Dearness Allowance to the Government employees & Dearness Relief to the pensioners with effect from 01.07.2021 to 28% representing an increase of 11% over the existing rate of 17% of Basic Pay/Pension.
How Much Additional Salary Will Central Government Employees May Get?
According to the 7th Pay Commission Matrix, the basic pay of Level-1 employees ranges from Rs 18,000 to Rs 56,900. Let’s do the Calculation based on minimum basic pay of Rs 18,000.
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Assuming that basic pay is = Rs 20,000 per month.
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DA according to revise rate of 31% of Rs 20,000 = Rs 6,200.
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DA according to revise rate of 28% of Rs 20,000 = Rs 5,600.
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Difference in payment after the latest DA hike i.e., revised rate of 31% = Rs 7, 200
