The Central government recently confirmed in the Parliament about roll out of stalled Dearness Allowance (DA) and Dearness Relief (DR) from July 2021.
Around 52 lakh Central government employees and over 65 lakh pensioners are all set to start receiving hiked Dearness Allowances (DA) and other related benefits approved under the 7th Pay Commission from July 1.
However, Central government employees, as well as pensioners, are still in confusion regarding the DA benefits they will be receiving from next month according to the 7th Pay Commission matrix.
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Currently, the Central government employees are receiving DA at 17 per cent of basic pay. As per the latest revision, the DA will increase by 11 per cent to 28 per cent from July 2021 onwards.
The 11 per cent hike announcement comes after adding three pending DA hikes which includes a 3 per cent jump in DA from January to June 2020, a 4 per cent rise from July to December 2020 and a 4 per cent increase from January to June 2021.
Calculate Your Salary After DA Hike
As per the 7th Pay Commission matrix, the salary of a Central government employee includes three components, i.e. basic salary, allowances and deductibles. The minimum basic salary of Central government employees according to the pay matrix is Rs 18,000.
As per the existing pay matrix, Rs 2,700 per month will be directly added to the basic salary of the Central government employees. With the hike, employees’ total dearness allowance is set to increase by Rs 32,400 on annual basis.