Expensive allowance hike soon! How will the salary increase with 38% DA – calculation
Although no official confirmation has come from the government, several reports have claimed that the central government is soon to announce the revised rates of High Cost Allowance (DA) and High Cost Assistance (DA) for employees and central government retirees respectively. The announcement of the DA/DR rise could be made during the last week of September.
The DA/DR rate should drop from the current 34% to 38%. The announcement will be made after the Union Cabinet meeting chaired by Prime Minister Narendra Modi. Reports have also claimed that the dossier regarding the DA/DR hike has reached the Union Cabinet Office and only final approval is awaited.
Generally, the government always approves the DA/DR question. With inflation already reaching above RBI estimates, the rise in DA/DR has become significant for central government employees and retirees.
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Dearness/DR Hike Allowance Calculation
Here is an overview of how salary/pension will increase assuming DA/DR rates increase by 4% to 38%:
- If the basic salary/pension is Rs 25,000, the DA/DR at the rate of 38% will be Rs 9,500. At the rate of 34%, the amount of the DA/DR is Rs 8,500. salary will increase by Rs 9,500-Rs 8,500 = Rs 1,000.
- If the basic salary/pension is Rs 35,000, the DA/DR at the rate of 38% will be Rs 13,300. At the rate of 34%, the DA/DR amount is Rs 11,900. will increase by Rs 13,300-Rs 11,000 = Rs 1,400.
- If the basic salary/pension is Rs 45,000, the DA/DR at the rate of 38% will be Rs 17,100. At the rate of 34%, the DA/DR amount is Rs 15,300. will increase by Rs 17,100-Rs 15,300 = Rs 1800.
- If the basic salary/pension is Rs 55,000, the DA/DR at the rate of 38% will be Rs 20,900. At the rate of 34%, the DA/DR amount is Rs 18,700. will increase from Rs 20,900 to Rs 18,700 = Rs 2,200.
- If the basic salary/pension is Rs 65,000, the DA/DR at the rate of 38% will be Rs 24,700. At the rate of 34%, the DA/DR amount is Rs 22,100. will increase by Rs 24,700-Rs 22,100 = Rs 2,600.
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The monthly salary/pension and DA/DR rates of central government employees and retirees are decided in accordance with the recommendations of the 7th Salary Commission.
