A Hike 7th Pay Commission: The central government has recently announced a hike in Dearness Allowance and Dearness Relief for central government employees and pensioners respectively. With the latest announcement, DA and DR will be paid to the salaried at a rate of 34 per cent, increasing from the earlier rate of 31 per cent, the central government led by Prime Minister Narendra Modi has said
DA will be hiked by 3 per cent, effective from January 1, 2022. The move will impact around 47.68 lakh central government employees and 68.62 lakh pensioners amid rising fuel prices, oil prices and inflation in general.
However, the DA calculation is only calculated on the basic pay of the employee and not any other allowance is included while calculating this. This means that all central government employees, who are to receive their revised salaries in March after the DA hike, will only get the increased amount on calculations based on the Basic Pay.
The Department of Expenditure has also issued a clarification on this note on March 31, after the government announced the DA hike under 7th Pay Commission.
Here are the key points the government’s office memorandum noted on DA hike and its payment
DA, DR Hiked by 3% for Central Govt Employees, Pensioners; How Much Salary to Increase
- “The term ‘Basic Pay’ in the revised pay structure means the pay drawn in the prescribed Level in the Pay Matrix as per 7th CPC recommendations accepted by the Government, but does not include any other type of pay like special pay etc,” the Department of Expenditure (DoE) has said in the Office Memorandum (O.M.) data.
- “The Dearness Allowance will continue to be a distinct element of remuneration and will not be treated as pay within the ambit of FR 9(21),” the office memorandum further noted.
- The department added that the payment on account of Dearness Allowance involving fractions of 50 paise and above may be rounded to the next higher rupee and the fractions of less than 50 paise may be ignored.
- “The payment of arrears of Dearness Allowance shall not be made before the date of disbursement of salary of March, 2022,” it said.
- Estimates and the expenditure will be chargeable to the relevant head of the Defence Services Estimates. In respect of Armed Forces personnel and Railway employees, separate orders will be issued by the Ministry of Defence and Ministry of Railways, respectively. These orders shall also apply to the civilian employees paid from the Defence Services, the memorandum further said.
DA Hike 7th Pay Commission: Salary Calculation
Going by the department of expenditure’s notice, if an employee’s basic pay is Rs 18,000, he or she will get a Dearness Allowance of Rs 6,120 after the latest hike. At the rate of 31 per cent DA earlier, the employee was getting DA of Rs 5,580. This will mean that an increase of Rs 540 has been made after the latest DA hike.