This year the government has given the biggest gift (7th Pay Commission) to the central employees on Navratri. The government has announced to increase DA by 4 percent for central employees, pensioners. The DA hike was approved in the cabinet meeting on Wednesday. Before this decision of the government, a huge amount will come in the pockets of the central employees during the festivals. This increase will be applicable from 1st July 2022.
After this decision taken in the cabinet, the DA of central employees has increased from 34% to 38%. At present, there are about 50 lakh central employees and about 62 lakh pensioners. All of them are going to get the benefit of increased dearness allowance.
Along with this, 78 days bonus for railway employees has also been approved by the cabinet. These decisions of the cabinet will put an additional burden of about 40,000 crores on the government.
Let us try to know who is going to benefit from this increase.
Minimum DA increased by Rs 720/month
1. Basic Salary Rs.18,000 (Pay Matrix 1)
2. New Dearness Allowance (38%) Rs 6,840/month
3. Dearness Allowance so far (34%) Rs 6,120/month
4. By how much Dearness Allowance increased 6,840-6,120 = Rs 720/
month
Maximum DA increased by Rs.10,000/month
1. Basic Salary Rs 2,50,000 (Pay Matrix 18)
2. New Dearness Allowance (38%) Rs 95,000/month
3. Dearness Allowance so far (34%) Rs 85,000/month
4. By how much Dearness Allowance increased 95,000-85,000 = 10,000 Rs/month
5. Increase in annual salary 10,000 X 12 = Rs 1,20,000
