# 7th Pay Commission DA Hike Calculation: Dearness allowance increased by Rs 15,144, know when you will get money

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7th Pay Commission DA Hike Calculation: Dearness allowance for central employees may increase at the rate of 4% in August. It can be announced in the cabinet meeting to be held in August. Consider a calculation of how much money will increase if DA increases.

DA Hike Calculation: Good news has come for the central employees. There is going to be a big jump in salary due to increase in dearness allowance. It has been decided to increase the dearness allowance by 4 percent. The figures of AICPI index ie inflation are clearly telling that central employees are going to get a big hike. However, there is still a possibility of more than 4% increase in Dearness Allowance (DA Hike).

#### Dearness Allowance will be 38%

Under the 7th Pay Commission, now all central government employees and pensioners are being paid DA and DR at the rate of 34 percent. But, by August, it can increase to 38%. It will be paid with the salary of August. Now central employees can get an idea of ​​the salary increase according to their basic pay and grade.

#### How is DA Calculation done?

The next installment of DA can be paid along with the salary of August. But, before that we can guess how it will be calculated and how it will be decided. If Dearness Allowance (DA Hike) is likely to increase by 4 percent, then it can be calculated on Basic Salary. If someone’s salary is Rs 20000, then at the rate of 4 percent, his salary will increase by Rs 800 in a month.

#### This formula works

There is a formula for dearness allowance calculation. The formula for central employees is [(Average of All India Consumer Price Index (AICPI) for last 12 months – 115.76/115.76]×100. Now if we talk about Dearness Allowance of people working in PSU (Public Sector Units), then the method of its calculation is- Dearness Allowance Percentage = (Average of Consumer Price Index of last 3 months (Base Year 2001=100)- 126.33))x100

#### How much salary will increase, understand DA Calculation

According to the pay-matrix of 7th pay commission, there will be a bumper increase in the salary of officer grade. Here we have calculated the basic salary of a pensioner at Rs 31,550. You can also understand from this how much the salary will increase.

#### Basic Pay – Rs 31550

• Estimated Dearness Allowance (DA) – 38% – Rs 11,989 per month
• Existing Dearness Allowance (DA) – 34% – Rs 10,727 per month
• On increasing Dearness Allowance (DA) by 4% – Rs 1262 (every month) will come more
• Annual Dearness Allowance paid – Rs 15,144 (at 38% DA) after 4% hike

#### Calculation on 38% DA

Let’s assume if dearness allowance increases by 4% then the total DA will become 38%. If you calculate in the maximum salary range, then Rs 21622 will be available as DA every month on the basic salary of Rs 56,900. The total annual dearness allowance will be Rs 2,59,464.

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 @ praveshmaurya24@gmail.com