Bringing in some good news for over 52 lakh central government employees, the government is likely to take the final decision about the pending dearness allowance (DA) after its meeting with representatives of the employees that is scheduled for June 26. The employees will start getting enhanced DA from July 1 which in turn will increase their drawn salary; however, the confusion around the calculation of arrear DA has not been cleared yet. The government and the employees are expected to arrive at a final concession after their scheduled meeting. Employees will be getting their arrear DA for the period between January 1, 2020, to January 1, 2021, in three instalments based on calculation according to the 7th pay commission.
Speaking about the calculation of the arrear DAs, Shiv Gopal Mishra, Secretary-Staff Side, National Council of JCM, said that the DA arrear of level 1 employees will be between Rs 11,880 to 37, 554. Meanwhile, for employees of level 14, the calculation DA arrears can be between Rs 1,44,200 to Rs 2, 18,200. He said the final results can be understood by a simple calculation.
Level 1 employees with a minimum pay grade of Rs 1,800 and a salary range of Rs 18,000- 56,000 in 7th pay commission get minimum basic pay of Rs 18,000. They will get a DA of 4 per cent for January 2020- June 2020, 3 per cent for July 2020- December 2020 and an estimated 4 per cent DA from January 2021- June 2021. Let’s see what the amount will be as we calculate DA arrears for Level 1 employees.
January- June 2020 - Rs 4,320- Rs 13,656
July- December 2020- Rs 3,240- Rs 10,242
January 2021- June 2021- Rs 4,320- Rs 13,656
This means for employees with basic pay of Rs 18000 the DA arrears for the above-mentioned period will be Rs 11,880 (4320+ 3240 = 4320). Meanwhile for employees with basic pay of Rs 56,000 that DA arrear amount stands at Rs 37,554 (13,656 + 10,242 + 13,656)
Similarly, the increase in DA will bring a big relief for people working at higher pay scales.