7th Pay Commission: Increased dearness allowance will come with July’s salary, check how to calculate DA hike

7th Pay Commission: Increased dearness allowance will come with July’s salary, check how to calculate DA hike

In good news for crores of central government employees and pensioners, the Union Cabinet has finally approved the restoration of dearness allowance (DA) and dearness relief (DR) that will be effective from July. This means that the increased DA and DR of employees and pensioners will come with July’s salary or pension, respectively.

In June’s salary or pension, employees and pensioners had received DA or DA at 17 percent of their basic salary. However, from July’s salary onwards, employees will receive 28 percent of their basic salary as DA. This means that employees will get a hike equivalent to 11 percent of their basic salary.

How to calculate the DA hike?

The dearness allowance hike that has been restored by the government includes a 4 percent rise in January 2020, a 3 percent increment in June 2020, and a 4 percent rise in January 2021.

In total, employees and pensioners are getting an 11 percent hike that will increase the dearness allowance contribution from 17% to 28%. For calculating the hike in a salary, one has to calculate the 11% of their basic pay.

For example, if you earn Rs 20,000 basic salary per month, then 11% of your basic salary will be Rs 2200, which will be the DA hike you’ll be getting from July’s salary onwards. You can calculate your salary hike accordingly.

Will DA increase further?

As of now, the government has not updated its employees and pensioners on whether it’ll be giving a dearness allowance hike which is pending for June 2021. However, reports suggest that employees and pensioners may soon get an additional 3% of their basic salary as a hike in DA for June 2021.

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