7th Pay Commission: It is final now! DA hike to be 4%; central employees set to benefit handsomely

by Shubham Shukla

7th Pay Commission latest news today: The wait for central government employees is finally set to get over. The Narendra Modi government will increase the Dearness Allowance of the central employees by 4 per cent. The hike in DA will be implemented from 1 July 2021.

The 4 per cent hike in dearness allowance is confirmed, Zee Business’ Shubham Shukla reports. The All India Consumers Price Index or AICPI numbers are clear indications as to why the DA hike is being raised by 4 per cent.

The announcement on this could come soon. If the announcement is made in August, then the central government employees will also get one month arrear for July. But, the biggest news is that that overall salary in hand may get a significant boost.

Calculation on 38% DA

Till now, the employees have been getting 34 per cent DA. If the DA hike of four per cent is announced, the DA will be 38 per cent and will be implemented from 1 January 2022.   

This will lead to a significant jump in the salary of the employees. Now, the annual increase of the employees with Rs 18000 as basic salary will be Rs 6840. 

1. Basic Salary of Central Employee – Rs 18,000

2. Current Dearness Allowanc (34%) – Rs 6120 per month

3. New Dearness Allowance (38%) – Rs 6840 per month

4. Increase in DA – Rs 6840- 6120 = Rs 720 per month

5. Increase in annual salary - 720X12= Rs 8640

Calculation on highest basic salary

1. Basic Salary of Central Employee Rs 56900 per month

2. New Dearness Allowance (38%) Rs 19346 per month

3. Current Dearness Allowanc (34%) – Rs 21622 per month

4. Increase in DA Rs 21622-19346= Rs 2276 per month

5. Increase in annual salary – Rs 2276 X12= Rs 27,312

The numbers are released by Ministry of Labour & Employment on the last working day of the month. The AICPI index numbers are based on the data collected from 88 industrial centers across the country.