Even as the Union Finance Ministry hasn't cleared the air on restoring the benefits of Dearness Allowance (DA) and Dearness Relief (DR) to over 50 lakh employees and 60 lakh pensioners, the secretary of the National Council of joint Consultative Machinery (NC-JCM) Staff side Shiv Gopal Mishra claims that Union government is going to lift the freeze order soon.
Significantly, when the NC-JCM Secretary made claims, the office of Cabinet Secretary didn't deny so, which lends credence to the claims made. Moreover, a glance at the freeze order issued by the Department of Expenditure, Ministry of Finance, on April 23 indicates that the freeze order has been up to June end only.
In the given context, it is believed that the Centre will restore the DA and DR soon. As per the statement of Mishra, the employees will get the benefit from September. Moreover, they will draw the arrears of DA and RD for July and August.
Now Take A Look At Salary Hike?
As per the formula of DA calculation in 7th Pay Commission, the per cent value is calculated by taking the average of consumer price index - industry workers for the last 12 months (means up to June as DA is usually announced in July and up to December if announced on January) subtracted from a value of 261.4 and divided by the same value.
According to the calculation, the DA rate in July will be around 31 per cent. At this rate how much rise a central government will see in his/her salary. The details are below.
- If drawing minimum grade pay of 1800, then the minimum salary as per the 7th CPC is Rs 18,000.
- In case Rs 18,000, then rise in DA for the first six months has been 4 per cent, next six months it will be 7 per cent and for the last six months, it will be 11 per cent (as the DA has been pending for the period of January 2020 to June 2021).
- Therefore, the arrears they draw will be - Rs 23,760.
- Similarly, if in the pay band of Rs 5,200 - 29,200, if an employee is having grade pay of Rs 2800, then the arrears he/she will draw amounts to Rs 35,624.
- So, calculate your salary hike as per the formula and the pay grade you are in.