Dearness allowance calculation: Dearness allowance of central employees has been announced. But, how much will increase in their salary, it can be calculated as an estimate.
Dearness allowance calculation: The wait for the central employees is finally over. The Modi government at the Center announced dearness allowance for July 2021 just before Diwali. Now the dearness allowance of the employees (Central government DA News) has been increased by 3 percent. Under the 7th Pay Commission, now all central government employees and pensioners will be paid DA and DR at the rate of 31 percent. It will be paid in the salary for the month of October. In October salary (How much salary will increase) DA will be paid at the rate of 31 per cent and 3 months arrears (July, August, September) will also be given. Now central employees can get an idea of the salary increase according to their basic pay and grade.
How is Dearness Allowance calculated?
DA installment will be paid before Diwali. But, before that we can guess how it will be calculated and how it will be decided. Dearness Allowance (DA Hike) has increased by 3 percent. It is calculated only on the basic salary. If someone’s salary is Rs 20000, then at the rate of 3 per cent, it will increase by Rs 600 in a month.
This formula works
There is a formula for dearness allowance calculation. The formula for central employees is [(Average of All India Consumer Price Index (AICPI) for last 12 months – 115.76/115.76]×100. Now if we talk about Dearness Allowance of people working in PSU (Public Sector Units), then the method of its calculation is- Dearness Allowance Percentage = (Average of Consumer Price Index of last 3 months (Base Year 2001=100)- 126.33))x100
How much salary will increase, understand DA Calculation
According to the 7th pay matrix, there will be a bumper increase in the salary of officer grade. AK Shukla, retired assistant commissioner from EPFO, told that if someone’s basic salary is currently Rs 31,550. If you calculate on this then…
- Basic Pay – Rs 31550
- Total Dearness Allowance (DA) – 31% – Rs 9781 per month
- Dearness Allowance paid so far (DA) – 28% – Rs 8834
- On increasing Dearness Allowance (DA) by 3% – Rs 947 (every month) will come more.
- Annual Dearness Allowance payment – Rs 11,364 (total 31 per cent) after 3 per cent hike
Discussion is still going on regarding arrears
After the announcement of Dearness Allowance (DA Hike) for July 2021 in October, now the question is whether the arrears for the last 18 months will be paid or not. Because, the government has announced both dearness allowances for this year (DA news in Hindi). Actually, in response to a question, the government has made it clear in the Rajya Sabha that the arrears will not be paid. Because, DA was kept frozen during that time. Hence arrears are not generated. But, the employees’ union argues that dearness allowance is part of the salary. It cannot be stopped. It was stopped during the Corona crisis, but now when it is restored, the money for that period should be given. However, when the final decision of this tussle will be taken is not yet decided.