7th Pay Commission: Here's How Your In-hand Monthly Salary Will Increase After DA Hike

The current raise in DA would be calculated on the Basic Pay of the employees which will benefit 48 lakh central government employees.

New Delhi: The much-anticipated hike in Dearness Allowance (DA) has brought some cheer for central government employees. In this regard, the finance ministry has also issued an order to implement the Cabinet decision to be effective from July 1.

For Armed Forces personnel and Railways employees, separate orders regarding 28 percent DA will be issued by the respective ministries, the finance ministry said. Earlier the three additional installments of the DA which were due since January 1, 2020, July 1, 2020, and January 1, 2021, were frozen.

The present hike will represent an increase of 11 percentage point hike in dearness allowance and dearness relief for central government employees and pensioners brings the new DA rate to 28 percent.

How will the DA hike affect your monthly salary?

The current raise in DA will benefit 48 lakh central government employees. This hike would be calculated on the Basic Pay of the employees. For instance, an employee gets Rs 100 as basic pay. The DA amount at 17 percent rate comes around Rs 17. Now, the total DA is raised by 28 percent of Rs 100 which comes to Rs 28.

According to the minimum basic pay recommended for central government employees at the entry-level by the 7th Pay Commission is Rs 18,000. At 17 percent DA rate, employees were getting Rs 3,060 as the dearness allowance. With the current hike at 28 percent rate, employees will get Rs 5,040 in a month as the dearness allowance.

Central government employees will witness a significant rise in monthly payments from July onwards just ahead of the festival season.