7th Pay Commission: Central Government Employees’ Annual Salary to Increase by Rs 95,000

The most awaited news for Central Government employees is here! Their salary is set to increase by Rs 95,000 as a result of the recent increase in Dearness Allowance. Central government employees are getting a 28% increase in dearness allowance from July 1.  And, once again, the Centre raised its DA from 28 to 31%.

Salary Increases by Pay Grade

The central government employees must be aware that their compensation rises in accordance with their basic pay and grade. And now, as a result of the DA increase, their pay will rise. Over 47.14 lakh central government workers and 68.62 lakh pensioners would benefit from the increase in dearness allowance and dearness relief. They will be able to take home a larger yearly wage package as a result of the raise.

According to the 7th Pay Commission's recommendations, the compensation of a Level 1 central government employee varies from Rs 18000 to Rs 56900. And the yearly compensation rise for a Central government employee with a salary of Rs 18000 will be Rs 30,240. 

Minimum Basic Salary Calculation

• The employee's basic pay is Rs 18,000 per month.

• Rs 5580/month for new dearness allowance (31%).

• Previously, the dearness allowance used to be (17%) Rs 3060 per month.

• The Final Raise in DA: 5580-3060 = Rs 2520/month.

• Salary rise for the year 2520X12 = Rs 30,240.

Maximum Basic Salary Calculation

• Employee's basic wage is Rs 56900.

• New dearness allowance (31%), Rs 17639 per month.

• Previously, the dearness allowance used to (17%) is Rs 9673 per month.

• The Final Raise in DA: 17639-9673 = Rs 7966 per month.

• 7966X12 = Rs 95,592 annual pay increase.

The total annual dearness allowance under the 31% dearness allowance is Rs 211,668 on a basic income of Rs 56900. However, when it comes to the difference, the annual salary increase is Rs 95,592.