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HomePersonal Finance7th pay commission: Big news! Good news for employees, salary will increase...

7th pay commission: Big news! Good news for employees, salary will increase by 20000 in May, benefit of Arrear-PF and Gratuity will also increase

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If the DA is 34%, an employee with a salary of Rs 18,000 per month will get Rs 6,120 per month / yearly Rs 6,480 and the annual DA of 56000 salary will be Rs 20,484.


7th Pay Commission: There is going to be a big jump in the salary-pension of Central Government Employees. The benefit of increased 3% dearness allowance and dearness relief is going to be available in May. The same arrears of January, February and March will also be given, since DA / DR has come into effect from January 1, 2022.
50 lakh employees and 65 lakh pensioners will get its benefit.

In fact, the Modi government at the Center has increased the dearness allowance and dearness relief of central employees-pensioners by 3%, after which the total DA of the employees has increased from 31% to 34%. This will be applicable from January 1, in such a situation, the benefit of arrears of January, February and March will also be available. The calculation of this dearness allowance will be done on the basic pay i.e. the more basic pay, the more DA benefit will be available. The salary of the employees will increase according to different levels. With the increase in DR, the pension of the pensioners will also increase.

Along with DA, employees can also get the benefits of House Rent Allowance, Travel Allowance, Provident Fund and Gratuity. Since the monthly PF and gratuity are calculated from the basic salary and DA, due to the increase in DA, PF and gratuity are also expected to increase. -30 thousand will increase, although DA will cross 50%, then only HRA can be increased.

DA double in 9 months

Let us tell you that according to the recommendations of the 7th Pay Commission, there is an increase in dearness allowance and dearness relief twice a year, this increase is done on a half yearly basis. DR has doubled. Central employees and pensioners will now get DA at the rate of 34%, which was just 17% about 9 months ago. That is, the DA of central employees has doubled from 17% to 34% in 9 months.

Understand salary calculation like this

  • If the DA is 34%, an employee with a salary of Rs 18,000 per month will get Rs 6,120 per month / yearly Rs 6,480 and the annual DA of 56000 salary will be Rs 20,484.
  • For example , if the basic salary of an employee is Rs 18,000, then the total annual DA would be Rs 73,440 but the annual increase in salary would be Rs 6,480.
  • The basic salary of an employee with a basic salary of Rs 56,900 will increase by Rs 232,152 according to the basic salary of Rs 19346/month.
  • If the basic pay of the employee is Rs 18,500, then he will get DA of Rs 6290 at the rate of 34% i.e. the gross salary has increased by Rs 555. The DA of the employees with the maximum salary slab will increase to Rs 19346 per month.
  • Basic salary- Rs 18,000. New Dearness Allowance (34%) – Rs.6120/month
    Total new dearness allowance (34%) – Rs 73,440/annum. Dearness Allowance so far (31%) – Rs 5580/month
  • How much dearness allowance increased – 6120- 5580 = Rs 540 / month. How much will you get in May – 540X4 = Rs 2,160
  • Increase in annual salary – 540X12 = Rs 6,480
  • Basic salary- Rs 56,900. New Dearness Allowance (34%) – Rs 19,346/month
  • New Dearness Allowance (34%) – Rs 232,152/annum. Dearness Allowance so far (31%) – Rs 17639/month
  • How much dearness allowance increased – 19346-17639 = Rs 1,707 / month. How much will you get in May- 1,707 X4 = Rs 6,828
  • Increase in annual salary – 1,707 X12 = Rs 20,484

Pravesh Maurya
Pravesh Maurya
Pravesh Maurya, has 5 years of experience in writing Finance Content, Entertainment news, Cricket and more. He has done BA in English. He loves to Play Sports and read books in free time. In case of any complain or feedback, please contact me @ businessleaguein@gmail.com
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