7th Pay Commission Latest News Today: The Narendra Modi-led Centre is reportedly planning to hike the Dearness Allowance (DA) of Central government employees yet again. Earlier last month, the Centre had raised the dearness allowance (DA) under the 7th Pay Commission for its millions of employees and pensioners to 28 per cent from 17 per cent, with effect from July 2021.
Now, if the latest reports are to be believed, the government is now mulling to increase the DA to 31 per cent from the existing 28 percent. If the reports come true, there will be a significant increase in the monthly income of government employees as an increase in DA is directly related to their salary.
With this move, more than 50 lakh permanent central government employees and 65 lakh pensioners will be benefitted.
For the uninitiated, DA was hiked by 4 per cent in January 2020, 3 per cent in July 2020 and again 4 per cent in January 2021. But owing to the pandemic, the government employees were getting DA at an older rate of 17 per cent as the Centre had decided to freeze their Dearness Allowance.
How will salary increase after 31 per cent DA hike?
Monthly salary of a government employee at entry-level (Level 1) ranges from Rs Rs 18,000 to Rs 56,900, which means that a government employee’s basic salary is Rs 18,000. At the 17 per cent DA rate, these employees were getting Rs 3060 as the dearness allowance till June 2021. After July, these employees are getting Rs 5040 as the dearness allowance as the government raised it to 28 per cent.
However, if the government approved a 31 per cent DA to the central government employees from September, they will start receiving dearness allowance or dearness relief of Rs 5580 (31% of 18,000).
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