7th Pay Commission Latest News Today: For the Central government employees who are waiting for a hike in their salary, here comes a big update for them.
If media reports are to be believed, then they will receive a hike in Dearness Allowance next month. The Central government is likely to make the announcement regarding DA hike in its next cabinet meeting scheduled in the first week of August. Why should the Central government employees get DA hike? The prime reason is the recent All-India CPI-IW data.
The AICP Index, one of the crucial factors in determining the DA, hints at the probability of increase in the DA of the central government. As per reports, there could be a 4 percent hike in Dearness Allowance in August. This means the total DA will reach, after the hike, to 38 percent. As per media reports, the government could announce DA hike August third week.
It is expected that the cabinet meeting may take place on August 3. These are the early speculations only, however, the employees will have to wait for official announcement on the matter. It must be noted that the Dearness Allowance is revised twice a year. The first is given from January to June, while the second comes from July to December.
As per a report by Zee Business, the decision on this could be made during the upcoming Cabinet Meeting in the first week of August. If the new DA hike will be implemented from 1 July 2022, then employees will also get the arrear of the difference in July and August. At present, the central government employees are getting 34 per cent DA hike. After the increase the DA will be 38 per cent. On a basic salary of Rs 18,000, the annual DA increase will be Rs 8640. Calculation on minimum basic salary:
- Basic Salary – Rs 18,000
- Current DA at 34% – DA hike by Rs 6120 per month
- New DA at 38 per cent – DA hike by Rs 6840 per month
- DA Increase – Rs 6840- 6120 = Rs 720 per month
- Annual Salary increase Rs 720X12= Rs 8640
Calculation on maximum basic salary:
- Basic Salary – Rs 56900
- New DA at 38% – DA hike by Rs 21622 per month
- Current DA at 34 per cent – 19346 per month
- DA Increase – 21622-19346= 2276 per month
- Annual Increase in DA – Rs 2276 X12= Rs 27,312