Delhi, April 8: The Central government raised the Dearness Allowance (DA) and Dearness Relief (DR) by 4 per cent for central government employees and pensioners on 7th pay commission recommendations. With this, the new effective DA rate goes up to 42 per cent. To account for increased costs, the new instalment represents a 4 per cent increase over the current rate of 38 per cent of the Basic Pay/Pension.

Dearness allowance (DA) and dearness relief (DR) are revised twice a year, on January 1 and July 1 of each year. The most recent increase, will benefit approximately 48 lakh central government employees and 68 lakh pensioners, increased the DA by 4 per cent to 42 per cent on 7th pay commission recommendations. 7th Pay Commission: DA Hike to Be Announced in July With New Formula? Check Latest News Update Here.

After the 4% Dearness Allowance hike, the total DA figure has risen to 42%. If calculated in the maximum salary range, then the total annual dearness allowance on the basic salary of Rs 56,900 will be Rs 2,86,776. 7th Pay Commission: When Will Central Government Revise Fitment Factor For Its Employees? Check Latest News Update Here.

Those falling in this pay grade will get Rs 2,276 more as DA, than the current rate. Their monthly DA amount will rise to Rs 23,898 with this DA hike announcement.

To calculate DA on your salary, multiply your basic salary by the applicable (current) DA rate then divide the result by 100. Your DA calculation will be as follows: (42 x 29200) / 100 = 12264 if your base income is 29200 (pay matrix level 5). Hence, for the base salary of Rs. 29200, the DA amount you would earn is Rs. 12264.

Similarly, use the same approach to determine DR for your pension. Divide the figure by 100 after multiplying your basic pension by the current DR rate. For instance, your DR calculation will be as follows if your pensioner's basic pension (not bank pension) is 24500: (42 x 24500) / 100 = 10290. So, for the Rs 24500 basic pension, the DR amount you would receive is Rs. 10290.

For arrears, you need to multiply by the number of months. For example, if your monthly DA is Rs 12,264 and you want to calculate from January to March 2023, then the total amount would be Rs 12,264*3= Rs 36,792.

(The above story first appeared on LatestLY on Apr 08, 2023 03:20 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).