Delhi / Due to increase in DA, faces of central employees blossomed, know how much salary will increase now

The central government has given a big relief to about 1.2 crore central employees, pensioners today. The Cabinet Committee on Economic Affairs (CCEA) has increased the dearness allowance of central employees from 17 to 28 percent. It has also been decided to reinstate the Dearness Relief (DR) for pensioners. This will come into effect from July 1, 2021.

Vikrant Shekhawat : Jul 14, 2021, 04:15 PM
The central government has given a big relief to about 1.2 crore central employees, pensioners today. The Cabinet Committee on Economic Affairs (CCEA) has increased the dearness allowance of central employees from 17 to 28 percent. It has also been decided to reinstate the Dearness Relief (DR) for pensioners. This will come into effect from July 1, 2021.

Will not apply to previous months: Three installments of DA of central government employees were yet to be received. The government had banned DA due to the Corona epidemic. Similarly, the installments of DR of pensioners were also not paid. DA and DR of employees and pensioners are pending as of 1st January 2020, 1st July 2020 and 1st January 2021. But the government has said that the increased rate will be applicable from July 2021 and will not apply to past dues. That is, from today's date, dearness allowance will be given at the rate of 28 percent.

Now the central government has decided to give dearness allowance (DA) at the rate of 28 percent to its 48 lakh employees and 65 lakh pensioners. The government will put the increased amount of DA (Dearness Allowance) i.e. 28 percent in the account of the employees.

Why do you get Dearness Allowance (DA): In recent months, the inflation of all goods from vegetables to oil has increased significantly. Dearness allowance is given so that the central employee and pensioner do not have to bear the burden of rising inflation. Generally it is given twice a year (January to June and again from July to December). The central government fixes the dearness allowance on the average estimate of inflation for six months.

How much salary will increase: There is a direct increase of 11 percent in the DA of central employees. This will lead to a good increase in their salary. According to the 7th Pay Commission, now there is a formula for the salary of the employees, which is called the fitment factor. Salary is decided on the basis of this fitment factor.

At present, the fitment factor of central employees is 2.57. To calculate the salary of an employee, the basic salary excluding DA, TA (Travel Allowance), and House Rent (HRA) is multiplied by 2.57. Suppose, someone's basic salary is Rs 18,000, then his salary excluding allowances will be 18,000 X 2.57 = Rs 46,260.

After this dearness allowance, medical allowance etc. are added to it. On 18,000 basic pay, if earlier the dearness allowance was getting Rs 3,060 at the rate of 17 per cent, now he will get dearness allowance of Rs 5,040 at the rate of 28 per cent. That is, there will be an increase of at least Rs 1980 in his salary. After this, HR and Medical Allowance will be added to it. The HRA and medical expenses of the employees are also decided on the basis of DA.