Central employees will get 28% DA in 3 installments, know how much money you will get, PF will also be affected

New Delhi: The Union Cabinet on Wednesday approved the pending hike in Dearness Allowance (DA) of 50 lakh central government employees and 61 lakh pensioners. DA has been increased from 17% to 28% with effect from July 1, 2021. Now government employees will get 28 percent dearness allowance instead of 17 percent. The government pays DA and Dearness Relief (DR) to its employees and pensioners to compensate for inflation and rising cost of living, respectively. It is revised twice a year on 1 January and 1 July.

so much increase

The recent hike is a big relief as the hike in DA, DR was pending since last year as the government stopped it citing loss in revenue collection and rising cost of social schemes in the pandemic year. The three DA/DR pending installments implemented and notified on Wednesday include 4% from January 1, 2020 to June 30, 2020, 3% from July 1, 2020 to December 31, 2020, 4% from January 1, 2021 to June 30, 2021 up to. However, DA/DR will not be given for the period January 1, 2020 and June 2020.

impact on basic pay

The salary will be calculated from the basic salary under the 7th pay commission. Suppose if your basic salary (basic pay) is Rs 15 thousand then your DA will increase by 28 percent. According to this, it will be Rs 4200 i.e. there will be an increase of Rs 1650 as compared to earlier. If your basic salary is 25 thousand rupees, then according to 28 percent, your dearness allowance will be 7 thousand rupees and with an increase of 11 percent, there will be an increase of Rs 2750 as compared to earlier.

Effect on PF, Gratuity

With the increase in DA there will be an increase in the basic pay and also the monthly provident fund (PF) and gratuity contribution of the employee will increase as these are based on the basic component of salary and DA. Let us tell you that the central government had increased the DA by 4 percent for January 2020. DA was increased by 3 per cent in 2020 and then by 4 per cent in January 2021.