7th Pay Commission: Salary of Government Employees to Increase Up to Rs 2.30 Lakh in New Year

The latest news from the 7th Pay Commission is that the employees will receive great news in the New Year. In January 2022, the Dearness Allowance will be increased once more.

Actually, in the New Year, there may be another increase in DA, which will result in an increase in central government employees’ salaries. However, the amount by which the Dearness Allowance (DA Hike) would be increased in January 2022 has yet to be determined. However, according to the statistics from the AICPI index, DA is predicted to rise by 3%.

Govt. employees’ promotion in various departments by End of December  

By the end of December 2021, there will be promotions in various Center departments. Apart from that, before Budget 2022, there will be a discussion regarding the fitment factor, on which a judgment will be made. If this occurs, the minimum basic salary will be raised as well.

AICPI Statistics will Determine the DA

Experts predict that the DA will be increased by 3% in January 2022 as well. That is, if the overall DA rises by 3%, the total DA will rise from 31% to 34%. The results for September 2021 are already available, according to AICPI data. As a result, the DA percentage is 32.81%. The dearness allowance for July 2021 has been increased by 31% based on data up to June 2021. That is, dearness allowance will now be calculated based on new figures, and it will show a significant increase. 

DA Calculator from July 2021 

Calculation of DA Marks

• Calculation for July- 122.8x 2.88 = 353.664

• Total for August- 123x 2.88 = 354.24

• Calculation for September – 123.3x 2.88 = 355. 104

DA to Increase by 3%

According to the AICPI index, the DA was increased to 33% through September 2021. That is, there has been a 2% growth in it, according to this. However, data for October, November & December has yet to be released. It is possible that it will climb by another 1%.

If the CPI (IW) maintains above 125 by December 2021, a 3% rise in the DA is almost inevitable. That is, the overall DA will rise by 3% to 34%. It will be paid to start in January 2022, and central personnel salaries will be raised.

Calculation on 34% Dearness Allowances

• After the increase in DA by 3%, the total DA will be 34%.

• Now on the basic salary of Rs 18000, the total annual DA will be Rs 73440. 

• But talking about the difference, the annual increase in salary will be Rs 6480.

Calculation on Minimum Basic Salary

• Basic salary of employee Rs 18000

• New DA (34%) Rs 6120/ month

• DA so far (31%) Rs 5580/ month

• By how much DA increased 6120-5580 = Rs 540/ month

• Increase in Annual Salary 540 x 12 = Rs 6480

Calculation on Maximum Basic Salary

• Basic salary of employee Rs 56900

• New DA (34%) Rs 19346/ month

• DA so far (31%) Rs 17639/ month

• How much DA increased by 19346- 17639 = Rs 1707/ month

• Increase in Annual Salary 1707 x 12 = Rs 20484