7th Pay Commission: Salary Of Central Govt Employees To Rise Soon; Here's How Much They'll Get
There could be some good news for lakhs of Central government employees awaiting an update on 18 months Dearness Allowance (DA) arrears.
Data suggests 3% hike in 2022
According to reports, the Union Cabinet might take a favourable decision next week. If the DA increases then the salary of Central government employees will increase automatically.?However, it is still unclear how much DA hike will be implemented. But, according to the data of the AICPI index, it is expected that the DA would increase by 3% in 2022.
Besides DA hike, some Central government employees are also expected to get promotions in New Year. Some reports claimed that talks are also going on about the fitment factor before Budget 2022 and the Centre may take a final decision in this regard soon. It is to be noted that an increase in the fitment factor means that the minimum basic salary of Central government employees will also increase in 2022.
Calculation of hike
An increase in 3% DA means that the total DA of Central government employees will be 34%. It means a Central government employee with a basic salary of Rs 18,000 will receive an annual dearness allowance of Rs 73,440. See calculation below:
- 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?
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
DA arrear payment? ? ? ? ??
Adding to this, the report also said that the employees can get DA arrear payment soon. The government is yet to give the DA arrear of 18 months to its employees.?Central government employees are also most likely to get a House rent allowance hike (HRA Hike).
In July 2021, the government had given HRA Hike to central government employees to 27 per cent, 18 per cent and 9 per cent. The slabs depend upon the city in which the employee is residing. Last year, the government had increased DA from 28 per cent to 31 per cent. Employees are yet to receive an HRA hike according to that.
Several states have already decided to give DA hike to state government employees. These include the states of Andhra Pradesh, Odisha and Telangana. Dearness allowance is given to help the employees to adjust the rising inflation rates. After the Covid-19 pandemic, employees have seen a fall in their savings and are facing financial difficulties. In this time, News of DA Hike and HRA hike will act as a soothing balm.
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