7th Pay Commission: After increasing dearness allowance to 28%, if you are also engaged in the calculation of how much salary you will get, then we help you. Here we are doing a simple calculation on minimum and maximum basic salary.
7th Pay Commission: The payment of increased dearness allowance to more than 1 crore central employees and pensioners will be done in the salary coming at the end of September. A few days ago, the National Council of JCM (Staff side) had issued a letter about this, in which it was said that Dearness Allowance (DA News) will be paid with the salary of September. Also, August and September i.e. two months arrears will also be available. This means that a huge amount is going to come in the account of central employees in September.
Salary will increase according to pay grade
The Central Government has removed the ban on freeze dearness allowance for the last 18 months, the DA of the employees has been increased by 11%, now the Central Government employees and pensioners will be paid DA and DR at the rate of 28%. Central employees and pensioners can get an idea of the salary increase according to their basic pay and grade.
How much will the salary increase, here is the calculation
According to the 7th Pay Commission Matrix, the salary range of Level-1 of central employees ranges from Rs 18,000 to Rs 56900. Meaning the minimum basic salary is Rs 18,000. We will calculate only on the minimum salary that how much increase can be seen in the salary of the central employee in September.
Calculation on minimum basic salary
According to 28% dearness allowance, on a basic salary of Rs 18,000, the total annual dearness allowance will be Rs 60,480. But talking about the difference, the annual increase in salary will be Rs 23760.
1. Basic salary of the employee Rs 18,000
2. New dearness allowance (28%) Rs 5040/month
3. Dearness allowance so far (17%) Rs 3060/month
4. How much dearness allowance increased 5040-3060 = Rs 1980/month
5. Increase in annual salary 1980X12 = Rs 23760
Calculation on maximum basic salary
Now let’s see this calculation by doing the maximum basic salary of Level-1 at Rs 56900. According to 28% dearness allowance, the total annual dearness allowance on the basic salary of Rs 56900 will be Rs 191,184. But talking about the difference, the annual increase in salary will be Rs 75108.
1. Basic salary of the employee Rs 56900
2. New dearness allowance (28%) Rs 15932 / month
3. Dearness allowance so far (17%) Rs 9673 / month
4. How much dearness allowance increased 15932-9673 = Rs 6259 / month
5. Increase in annual salary 6259X12 = Rs 75108
However, the calculation of how much the final salary will be will come only after adding other allowances including HRA. This simple calculation is just for an idea of how much your salary will increase after the dearness allowance is increased.
3% DA for June is yet to increase
Dearness allowance for June 2021 has not been decided yet. But, it is clear from the AICPI data from January to May 2021 that 3% dearness allowance will increase further. According to JCM Secretary (Staff Side) Shiv Gopal Mishra, it is to be announced soon. However, when it will be paid is not yet decided. But, after increasing by 3 per cent more, dearness allowance will reach 31 per cent. Meaning the salary is sure to increase once again.
