News Edition 24 Desk: The Narendra Modi-led Union Cabinet on Wednesday approved the proposal to hike Dearness Allowance (DA) of Central Government employees & Dearness Relief (DR) of pensioners by 3% to 34% with effect from 1st January 2022. This increase is in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission.
The move will benefit about 47.68 lakh central government employees and 68.62 lakh pensioners. “The combined impact on the exchequer on account of both Dearness Allowance and Dearness Relief will be Rs 9,544.50 crore per annum”, an official release said.
How to calculate Dearness Allowance?
The Dearness Allowance of the Central govt employees is usually revised twice a year, between January and July. The dearness allowance is calculated by multiplying the current rate of dearness allowance by the base wage.
7th Pay Commission DA hike: Here’s how to calculate a salary hike
With the latest 3% increase in Dearness Allowance and Dearness Relief, the Central government employees and pensioners will get DA And DR at a rate of 34% of their basic pay and pension.
To calculate revision in salary and pension hikes, employees and pensioners need to calculate the 3% of their basic pay. If an individual is getting Rs 18,000, then his/her monthly salary or pension will increase by Rs 540. Overall, the DA at 34% rate will be about Rs 5580 in this case.