7th Pay Commission: 28% DA applicable from July 1, Anurag Thakur

New Delhi: The Union Cabinet has approved the restoration of the dearness allowance hike for Central government employees and employees in a meeting on Wednesday (July 14). Union Minister Anurag Thakur said that the Dearness Allowance (DA) for Central government employees and pensioners has been increased from 17 per cent to 28 per cent. He also noted that the revision in DA will be applicable from July 1, 2021. 

Over 1.2 crore central employees and pensioners were impatiently waiting for the decision on the restoration of dearness allowance hikes. Till June 2021, the dearness allowance of central government employees stood at 17 per cent of their basic pay. 

However, with the latest approval from the union cabinet, employees will now get a dearness allowance equal to 28 per cent of their basic pay. 

Here’s how to calculate salary with DA hike:

The central government increased the dearness allowance three times, which includes a 4 per cent hike in January 2020, a 3 per cent increase in June 2020 and a 4 per cent rise in January 2021. 

The new dearness allowance stands at 28 per cent if you calculate the current rate coupled with the three pending hikes (17+4 +3+4). For checking the salary increase, an employee will have to calculate 11% of his or her basic salary.

For example, if your basic salary is 20,000 per month, then you will get an 11% hike of Rs 2,200 per month. You can similarly calculate your increased salaries that will come starting with July’s salary.

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