New Delhi, September 3: A central government employee of Level 1, under the 7th Pay Commission, can expect a monthly increase in his/her salary ranging from R 540 to Rs 1,707 if the rate of dearness allowance (DA) is raised by 3 percent. Multiple reports said the Centre is likely to increase the DA rate by 3 percent. If it happens, central government employees, under the 7th Pay Commission, will get 31 percent of their basic pay as DA. 7th Pay Commission Latest News Today: DA Hiked to 28%, Here's How Much a Central Government Employee's Salary Will Increase.

The rate of DA is usually hiked twice every year. This year, however, the Centre hiked the DA rate just once and the increment came into effect from July 1. Currently, central government employees, who receive pay as per the recommendations of the 7th Pay Commission, get 28 percent of their basic pay as DA. They now hope for another hike in the DA rate. If the DA rate is increased by 3 percent, the staffers would receive 31 percent of their basic pay as DA. 7th Pay Commission: When Will Centre Hike DA Rate Again? Here Are Latest Reports and Updates.

Here's How Much Your Salary Will Increase If DA Hiked to 31%

  • Basic salary of the employee Rs 18,000

  • New Dearness Allowance (31%) Rs 5580/month

  • Existing Dearness Allowance (28%) Rs 5040/month

  • Calculate the difference: 5580-5040 = Rs 540/month

  • Increase in annual salary 540X12 = Rs 6,480

  • Basic salary of the employee Rs 56,900

  • New Dearness Allowance (31%) Rs 17,639/month

  • Existing Dearness Allowance (28%) Rs 15,932/month

  • Calculate the difference: 17,639 - 15,932 = Rs 1,707/month

  • Increase in annual salary 1,707 X 12 = Rs 20,484

Citing the All India Consumer Price Index (AICPI) data, a report by DNA said a 3 percent hike in the DA rate is very likely. The AICPI has reached 120.6 following an increase of 0.5 points in the index for May 2021. The Ministry of Labour has not released the data for June. If the AICPI touches 130 in June, a hike of 4 percent in the DA rate is likely. But it is impossible for AICPI to jump 10 points in a month, the report said, adding that a 3 percent hike in the DA rate is hence more likely.

(The above story first appeared on LatestLY on Sep 03, 2021 01:27 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).