• Sat. May 21st, 2022

Salary of central government employees expected to increase ahead of Holi; check how much

ByChad J. Johnson

Mar 5, 2022

New Delhi | Jagran Business Office: Central government employees could benefit from an increase in the dearness allowance (DA) by the end of March, leading to a significant increase in their salary. The Center can transfer the money from the increased increase in AD and arrears of the last two months with the March salary.

According to reports, the government can increase the DA up to 3%. Currently, the DA is 31%, which will now be increased to 34%. By the way, employees will enjoy benefits ranging from Rs 73,440 to Rs 2,32,152.

What is the dearness allowance?

The dearness allowance or DA is paid by the government to its employees as well as to a retiree to offset the impact of inflation. The effective salary of state employees needs constant improvement to help them cope with rising prices. As the impact of inflation varies depending on the location of the employee, DA is calculated accordingly. Thus, it varies from one employee to another according to their presence in the urban, semi-urban or rural sector.

What is the DA currently paid to central administration employees?
From now on, central government employees are paid an AD of 31 percent. The latest hikes were granted in July and October 2021. In October, the Union Cabinet had increased the daily allowance and high cost relief from 3% to 31% to benefit 47.14 lakh government employees central and 68.62 lakh retirees.

How much hiking is planned?

The central government could increase the DA by 3%, which could lead to an increase in the salaries of government employees by Rs 20,000. The announcement of the increase in DA could be made by the end of March.

DA calculation on lowest base salary

Base salary-18,000
Previous DA – Rs 5,580 per month at 31%
Now DA – 34% at Rs 6,120 per month
Monthly increase – 6,120 – 5,580 = 540
Salary increase in one year – 540×12 = Rs 6,480
Total DA for one year – Rs 73,440

Calculation of the DA on the highest base salary

Base salary – 56,900
Previous DA – 31% at Rs 17,639 per month
Now DA – 34% at Rs 19,346 per month
Monthly increase -19346-17639 = Rs.1707 per month
Salary increasing in one year – 1707 x 12 = Rs 20,484 per month
Total DA for one year – 19346 X 12 = Rs 2,32,152

Posted by:
Sugandha Jha