How to calculate salary hike after DA restoration

At present, dearness allowance is paid at 17% of the basic pay. The DA will be increased by 11% to 28% after it will be reinstated from July 2021 onwards.

New Delhi: Around 52 lakh central government employees are all set to get enhanced Dearness Allowance (DA) from July 1, which will see a sharp jump in their pay matrix, eventually leading to a sharp increase in their salaries. However, central government employees are a little worried about their DA arrears, since the status is not clear yet. The National Council of JCM has scheduled a meeting with government officials by June 26.

Central government employees are waiting for the decision to be taken at the June 26 meeting hoping that the government will decide in their favour. These employees are advised to use 7th pay commission salary calculator that equates the existing basic salary and the existing DA.

Talking about the 7th pay matrix and DA arrears, Shiv Gopal Mishra, Secretary-Staff Side, National Council of JCM, said that a simple calculation can show the DA arrears that central government employees can expect. “To know how much monthly salary will grow post-DA restoration, a central government employee is advised to check one’s monthly basic salary, which is decided by the 7th pay commission pay matrix. After checking out their monthly basic salary, they are advised to check their existing DA,” he said.

How to calculate salary after DA hike?

As per 7th Pay Commission matrix, the salary of a central government employee consists of three components: basic salary, allowances and deductibles. The minimum basic salary of central government employees according to the pay matrix is Rs 18,000. On the existing pay matrix, 15 per cent dearness allowance is expected to be added which means that Rs 2,700 per month will be directly added to the salary and Rs 32,400 will be added annually as DA.

Currently, the DA is 17 per cent. Post-DA restoration, the DA will go up to 28 per cent. So, monthly DA will go up by 11 per cent. This means DA allowance per month of a central government employee will go up to 11 per cent of their basic salary from July 2021. This same formula is applied while deciding the DR benefit of a central government pensioner.

As per the above mentioned formula, if a central government employee’s monthly basic pay is Rs 20,000 then its monthly DA will go up to 28 per cent which means the rise in monthly DA will be 11 per cent (Rs 2200). Similarly, other central government employees who have different monthly basic salary mentioned in their 7th CPC pay matrix can check how much their salary will go up after the DA restoration.

Note that the 11% hike comes after adding three pending DA hikes, including a 3 per cent jump in DA from January to June 2020, a 4 per cent rise from July to December 2020, and a 4 per cent increase from January to June 2021.

7th pay commission Travel Allowance (TA):

Many people are wondering that as DA hike leads to rise in TA to the same tune in certain conditions, will there be a TA rise for central government employees from July 1st. However, Mishra clarified that there will be no TA hike since for TA to be hiked in sync with DA hike, the existing DA of the central government employees has to be more than 25 per cent. But currently, it is at 17 per cent which means there will be no TA hike for the central government employees this time.

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Article first Appeared on Informalnewz

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