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7th Pay Commission BIG Update! 1 Crore Govt. Employees, Retirees To Get 34% DA Hike & Salary Increment Up to Rs 90,000

7th Pay Commission Big Update: Today, we have some really good news for the central government employees as their DA is about to hike by 34% along with the salary increment of up to Rs 90,000.

M Kanika
Indian Currency
Indian Currency

7th Pay Commission BIG Update: Here is some exciting news for the central government employees. The month of March is expected to make them wealthy as their income would be significantly increased after the Holi festival. This will help more than 1 crore central government employees and retirees. Their salary will increase by up to Rs 90,000. 

Following the release of the AICPI data for December 2021, it was agreed to boost the DA by 3%. Employees currently receive a 31% dearness allowance and this will rise to 34% after the next few days.

Dearness Allowance (DA) To Hike by 34%

Employees and retirees of the central government would get a 34 percent Dearness Allowance (DA). The All-India Consumer Price Index will be used to calculate the DA for the months of 2021.

The DA for central government employees was previously calculated using the consumer price index as the base year, with 2001 being the base year. From September 2020, the government will compute the DA using a new consumer price index with a base year of 2016.

To connect the old CPI series to the new consumer price index, a linking factor of 2.88 is required to calculate the DA.

This linking factor will be used to determine the Dearness Allowance for Central Government Employees and Pensioners. The Consumer Price Index for the month of January 2021, which is 118.2, can be converted to CPI with base 2001=100 by multiplying it by the Consumer Price Index with base 2016=100 for the month of January 2021, which is 118.2.

A Hike of Rs 90,000 in Salary

According to JCM Secretary Shiv Gopal Mishra, the employees of central government should be paid in line with inflation. The position with the arrears has yet to be clarified by the administration. 

If a 3% DA is issued in this situation, it is undoubtedly a source of relief. If an employee's basic wage is Rs 30,000 per month, their salary will rise by Rs 900 each month. Their gross salary will rise by Rs 10,800 on a yearly basis. Cabinet secretary level officers will have a pay raise of Rs 7500 per month. The maximum monthly income is Rs 2.5 lakh, and they would receive an annual benefit of Rs 90,000. 

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