Central Government Employees Receive More Salary Than Usual In August, Here's Why

New Delhi: For the month of August, a higher salary amount has been credited to the bank accounts of central employees. In July, the Center had announced that Dearness Allowance (DA) would be increased from 17 percent to 28 percent.

This DA has been calculated and added to the salary for August. About 1.14 crore employees and pensioners of the central government have benefited from this.

The increase in DA and DR has put an additional burden of about Rs 34 thousand crores on the exchequer. 

Dearness Allowance Calculations

If the basic salary of an employee is 20 thousand rupees, then earlier at the rate of 17 percent, DA of Rs 3400 was given to the employee per month. Now this DA has increased to Rs 5,600. Hence, there is an increase of Rs 2,200 in the monthly salary.

Similarly, if the basic salary of an employee is Rs 50,000 per month, the DA has increased from Rs 8,500 to Rs 14,000. Hence, the employee receives 5,500 rupees more in the monthly salary. This calculation has come into effect from July 1.

No Arrears For Central Employees

The central government employees have not received the DA arrears that were withheld from January 1, 2020, to June 30, 2021, due to the covid pandemic. The DA percentage that was calculated during this period has been added and restored from July 1.

The government had withheld three additional installments of DA and DR for one and a half years. The total amount of DA has been calculated to be 28 percent of basic pay. 

According to the 7th Pay Commission, DA is increased twice a year. Because of the covid-19 pandemic, the government had stopped three installments of DA and DR.

These installments were – 4 percent on January 1, 2020, 3 percent on July 1, 2020, and 4 percent on January 1, 2021. A total of 11 percent DA should have been paid that was withheld. Now it has been restored from July 1.