News from the 7th Pay Commission: The central employees’ wait is about to come to an end. It will be recognized how much his dearness allowance has climbed at the conclusion of this month. For this, the national government has taken preparations. The Union Cabinet has received the DA/DR file.
For central staff and retirees, the route has been made open for dearness allowance. This particular episode has advanced farther. In the Union Cabinet, the idea for the Dearness Allowance is now moving forward. If reports are to be believed, the Union Cabinet has already received the paperwork about the DA and DR rise.
It will now be accepted. According to sources, the enhanced DA for employees will be disclosed when it has been authorized by the cabinet in the final week of September. Let us inform you that the Dearness Allowance might increase by 4% this time (DA). At the moment, dearness allowance is handed out at a rate of 34%. It will rise and eventually reach 38%.
For the second time in a year, dearness allowance will be raised.
Twice a year, the central government announces the dearness allowance. It is put into effect twice every half-year. The first one takes effect in January and the second one in July. For January 2022, Dearness Allowance was raised by 3%. The percentage was raised from 31% to 34%. It is granted to the central staff as alimony while keeping in mind the rate of inflation. It is scaled up using the AICPI index data. According to data from the first half, dearness allowance rises in July. At the same time, it is announced to boost DA in January based on statistics from July to December.
The dearness allowance grows in consideration of the rate of inflation.
The country’s current rate of inflation is far higher than what the Reserve Bank of India predicted. But it is now under control. However, the rate of industrial inflation has been rising steadily. From this, it has been calculated that the dearness allowance from July may increase by 4%. DA/DR may rise by 4%, according to data from the All India Consumer Price Index for Industrial Workers.
Benefits would be received by 63 lakh pensioners and 52 lakh workers.
As of July 2022, 63 lakh retirees and about 52 lakh central government workers would benefit from the dearness allowance. The employees’ pay-level band has a minimum base wage of Rs. 18000. On top of that, a 34 percent dearness allowance is given. In the event that DA increases by 4%, it will then reach 38%. That employee’s monthly take-home pay would increase by Rs 720 as a result. The employees with basic salaries of 25,000 rupees would also receive a bonus of 1000 rupees each month in their pay.
computation of the minimal basic wage.
• The employee’s base pay is Rs. 18,000.
• Current Dearness Allowance of Rs. 6120/month (34%)
• A new dearness allowance of Rs. 6840 per month (38%).
• How much did the dearness allowance rise? 6840 – 6120 = Rs. 720 per month.
• An increase in annual pay of Rs. 8640 (720 X 12).
The maximum basic wage was calculated.
• The employee’s base pay is Rs. 56900.
• The current (34%) dearness allowance is Rs 19346 per month.
• The new dearness allowance is Rs. 21622 per month (38%)
• The rise in dearness allowance was 21622-19346, or Rs. 2276 per month.
• Salary increase: 2276 multiplied by 12 to equal Rs. 27,312.