7th Pay Commission: Determine your income hike after DA repair

Pay Comm 1

Due to the Coronavirus pandemic, the main federal government had actually initially suspended the dispensation of DA to main federal government workers. Nevertheless, the federal government has validated the rollout of the enhanced Dearness Allowance of around 52 lakh civil servant from July 1, 2021. Employees are all set to get an enhanced Dearness Allowance as it will ultimately result in a sharp hike in their salary after it is renewed.

Discussing the 7th Pay Commission pay matrix, Shiv Gopal Mishra, Secretary-Staff Side, National Council of JCM, said, “To know just how much monthly income will grow post-DA remediation, a main government staff member is recommended to inspect one’s month-to-month basic income, which is decided by the 7th pay commission pay matrix. After examining out their regular monthly basic wage, they are advised to check their existing DA.”

He said that a central civil servant can do a simple estimation to check his predicted DA financial obligations.

Surprisingly, Dearness Allowance is paid at 17 percent of the standard pay at present. The DA will increase by 11 percent to 28 percent post-DA repair.

What is Dearness Allowance and its existing rate?

Dearness Allowance is the cost-of-living allowance that is paid by the federal government to public sector staff members.

DA is computed at a specific percentage of the basic salary of a worker which is then included to the fundamental salary along with other parts of the wage which even more comprises the total wage of an employee of the government sector.

Especially, at present main federal government workers get a DA at 17 percent. This rate became efficient from July 2019. While additional revision was due in January 2020, DA hikes were kept hold due to the Coronavirus pandemic.

How to calculate income walking after DA restoration?

According to the 7th Pay Commission matrix, the minimum fundamental salary of a main civil servant is Rs 18,000, which makes up 3 parts: standard pay, reductions and allowances.

At present, the DA is fixed at 17 percent. However from 1 July 2021, according to the revised pay matrix, the DA will increase to 28 percent, which indicates that post-DA remediation, DA allowance monthly of a central civil servant will go up by 11 percent of their standard income.

According to the provided formula, if the monthly fundamental pay of a main federal government staff member is Rs 20,000 then its regular monthly DA will increase by 11 percent monthly, which amounts to Rs. 2200 and ultimately will go up to 28 percent. The annual addition or accumulation of DA will be Rs. 26,400.

Likewise, other central federal government staff members who have different regular monthly basic salaries pointed out in the 7th Pay Commission pay matrix can calculate a walking in their salary after the DA repair accordingly.

Point to note: The walking of 11 percent follows the addition of 3 pending DA hikes which consisted of a 3 percent rise in DA from January to June 2020, a 4 percent dive from July to December 2020, and a 4 percent walking from January to June 2021.

Published at Thu, 24 Jun 2021 11:38:09 +0000