7th Pay Commission (Dearness Allowance Hike Impact Calculation) Latest News Today: previous Diwali and other festivals, the Central Government has announced a rise in Dearness Allowance and Dearness Relief for Central Government Employees and Pensioners.
7th Pay Commission (Dearness Allowance Hike Impact) Latest News Today: before Diwali and other festivals, the Central Government has announced a rise in Dearness Allowance and Dearness Relief for Central Government Employees and Pensioners respectively.
The speed of DA and DR for workers and pensioners is increased by 3% if the essential Pay/Pension. The DA hike is predicted to assist the staff and pensioners in facing the rising inflation.
“The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, today has approved to release an extra installment of Dearness Allowance to Central Government employees and Dearness Relief (DR) to pensioners w.e.f. 1.7.2021 represents a rise of three over the present rate of 28% of the essential Pay / Pension, to catch up on price rise,” the Union Cabinet said in an exceedingly statement on Thursday 9 October 21st, 2021).
“This increase is following the accepted formula, which is predicated on the recommendations of the 7th Central Pay Commission. The combined impact on the exchequer on account of both Dearness Allowance and Dearness Relief would be Rs.9,488.70 crore each year,” it added.
The decision to extend DA and DR rates will benefit about 47.14 lakh Central Government employees and 68.62 lakh, pensioners. Earlier in July this year, the Central Government had hiked DA and DR for both government employees and pensioners by11 percentage points to 28% of basic pay/pension.
Now, the DA of Central Government Employees will be calculated at the rate of 31% of Basic pay. Let us understand the impact of the latest DA hike with an example: Suppose the Basic Pay of a Central Government employee is Rs 40,000/month.
As per the revised rate, he will now get 31% of Rs 40,000 as DA, i.e. equal to Rs 12,400. As per the previous rate of 28%, he was getting Rs 11,200 as DA.
So, with the latest DA hike, this employee will now get Rs 1200 more (Rs 12400-Rs 11,200) cash in hand instead of DA than what he was getting earlier.
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