New Delhi, October 14: It has been widely speculated that the Centre may raise the rate of dearness allowance (DA), under the 7th Pay Commission, by 3 percent. If it happens, central government employees will get 31 percent of their basic pay as DA. This will certainly result in hike up to Rs 6,750 in monthly salary of central government employees, under the 7th Pay Commission. Below the DA calculation method. 7th Pay Commission: Good News Regarding DA, DR Arrears Likely Soon, PM Narendra Modi to Take Final Call.

Currently, central government employees, under the 7th Pay Commission, receive 28 percent of their basic pay as dearness allowance. This rate of DA calculation came into effect from July this year. If the Centre increases the rate of DA by 3 percent, central government employees will get 31 percent of their basic pay as DA. The basic monthly salary of a central staffer ranges between Rs 18,000 and Rs 2,25,000. 7th Pay Commission: Good News Likely for Central Govt Employees Before Diwali 2021, DA Rate To Be Hiked This Month.

Based on their monthly basic pay, they will receive hike in their take home salary once the rate of DA is hiked to 31 percent. When the DA rate is set at 31 percent, an employee entitled for Rs 18,000 basic pay will get a monthly hike of Rs 540 in his/her take home salary. Similarly, an employee who gets Rs 2,25,000 as basic pay will receive monthly hike of Rs 6,750 in his salary.

Here's How Much Your 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

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

The rate of DA is usually hiked twice - in January and July - every year. However, it has been done just once this year. Central government employees expect the Centre to announce another hike. However, the government has neither denied nor confirmed reports suggesting that a hike of 3 percent is more likely.

(The above story first appeared on LatestLY on Oct 14, 2021 02:03 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).