New Delhi, Dec, 05: 7th Pay Commission latest updates: In a good news for lakhs of Central government employees, after the recent hike in their Dearness Allowance (DA), it is likely that the salary of Central government employees would increase by as much as Rs 95,000. The Central government employees are getting 28% hike in DA from July 1 and the Centre then again decided to increase the DA from 28% to 31%.
It is to be noted that the salary of a Central government employee increases according to their basic pay and grade. The DA hike is set to help over 47.14 lakh central government employees and 68.62 lakh pensioners. After the DA hike, Central government employees will take home an increased annual salary package.
The salary of a Level 1 central government employee ranges from Rs 18000 to Rs 56900 and if the salary of a Central government employee is Rs 18000, then the employees’ annual salary increase will be Rs 30,240. Here’s how:
Calculation on minimum basic salary
Basic salary of the employee – Rs 18,000
New dearness allowance (31%) – Rs 5580/month
Dearness allowance so far (17%) – Rs 3060/month
How much DA increased – Rs 2520/month
Annual salary increase = Rs 30,240
Calculation on maximum basic salary
Basic salary of the employee – Rs 56900
New DA (31%) – Rs 17639 / month
Dearness allowance so far (17%) – Rs 9673 / month
How much DA increased – Rs 7966 / month
Annual salary increase 7966X12 = Rs 95,592
As per 31% DA hike, the total annual DA will be Rs 211,668 on the basic salary of Rs 56900. But talking about the difference, the annual increase in salary will be Rs 95,592.