New Delhi: Here is some cheer for central government employees! The much-awaited Dearness Allowance (DA) and Dearness Relief (DR) benefit will be restored from July 1 to almost 52 lakh central government employees and around 60 lakh central government pensioners.
It is to be noted that the payment of DA of central government employees has not been revised since January 2020. With the restoration in DA, the employees will get DA arrears for the period between January 1, 2020, to January 1, 2021, in three installments based on the calculation according to the 7th pay commission, as per the Hindustan Times report.
Shiv Gopal Mishra, Secretary (Staff Side), National Council of JCM has informed the publication that central government employees need to check their respective 7th pay commission salary matrix for calculating salaries and pensions.
How to calculate your DA?
Mishra said that after noting monthly basic salary, employees are advised to check their existing DA. “Currently, it's 17 percent. Post-DA restoration, the DA will go up to 28 percent. So, monthly DA will go up by 11 percent. So, the DA allowance per month of a central government employee will go up to 11 percent of their basic salary from July 2021," Mishra was quoted in the report.
In a similar manner, the dearness relief (DR) benefit of a central government pensioner will be calculated.
As per the 7th Pay Commission matrix, the salary of a central government employee comprises of three components: basic salary, allowances, and deductibles.
If you go by the 7th pay commission salary calculation, then consider this example. If a central government employee's monthly basic pay is Rs20,000, then its monthly DA will go up to 28 percent of Rs20,000. It means effectively a rise in monthly DA will be 11 percent of Rs20,000 or Rs2,200. Similarly, other central government employees who have different monthly basic salary mentioned in their 7th CPC pay matrix can go ahead and calculate their salary after the DA restoration.