New Delhi, October 20: Salary of central government employees, under the 7th Pay Commission, will see sharp increase if the rate of dearness allowance (DA) is hiked to 31 percent. Currently, central government staffers get 28 percent of their basic pay as DA. It has been widely reported that the Centre may hike the rate of DA by 3 percent. If it happens, monthly and annual salary of central government employees will be increased too. 7th Pay Commission: Good News Likely for Central Govt Employees Before Diwali 2021, DA Rate To Be Hiked This Month.

If the rate of DA is hiked by 3 percent, central government employees, under the 7th Pay Commission, will get 31 percent of their basic pay as dearness allowance. Accordingly, annual salary of central government employees will see a hike between Rs 6,480 and Rs 81,000 based on their basic pay. Similarly, there will be monthly hike up to Rs 6,750 in salary of central government employees. 7th Pay Commission: Good News Regarding DA, DR Arrears Likely Soon, PM Narendra Modi to Take Final Call.

If the DA rate is set at 31 percent, an employee earning Rs 18,000 per month as basic pay will get a monthly hike of Rs 540 in his/her take home salary. The monthly hike of Rs 540 will translate into annual hike of Rs 6,480. Similarly, an employee who gets Rs 2,25,000 as monthly basic pay will receive monthly hike of Rs 6,750 in his salary, meaning Rs 81,000 increase in annual pay.

Here's How Much Your Monthly and Annual Salary Will Increase With 31% DA Rate

If Basic Salary of Employee Is Rs 18,000:

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

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

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

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

If Basic Salary of Employee Is Rs 2,25,000:

  • Existing Dearness Allowance (28%) Rs 63,000/month

  • New Dearness Allowance (31%) Rs 69,750/month

  • Calculate the difference: 69,750 - 63,000 = Rs 6,750/month

  • Increase in annual salary 6,750 X 12 = Rs 81,000

The rate of DA is usually hiked twice - in January and July - every year. However, it has been done just once this year. Therefore, central government employees are hopeful for another hike. But there has been no official statement on whether and when the hike would be announced.

(The above story first appeared on LatestLY on Oct 20, 2021 11:30 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).