7th Pay Commission: Increment with Promotion! These central govt employees will get Rs 5,000 hike in monthly salary
7th Pay Commission pay hike: In what can be termed as good news for some central government employees, the Centre has approved a big pay hike as well as promotions for them. According to media reports, these government employees will receive a monthly increment of Rs 5,000.
As per reports, the Centre has increased the House Rent Allowance (HRA) as well as Dearness Allowance (DA) of central government employees working in the Kendriya Vidyalaya Sangathan (KVS). The Union HRD ministry in its order also increased the grade pay scale of employees in Kendriya Vidyalaya.
The grade pay of the KVS employees has been increased from Rs 4,200 to Rs 4,600. Also, they have been promoted from level 6 to level 7. That means the central government employees falling under this new order will roughly get a monthly salary hike of Rs 5,000 monthly.
Experts also feel that these grade pay will not only boost the basic salaries of these employees but will also affect their HRA and DA.
Seventh Pay Commission Level 7 basic pay- Rs 44,900
According to the pay matrix of the seventh pay commission (CPC), the minimum basic salary of Level 7 officers is Rs 44,900. With this, there is an addition of 12% (DA + HRA) of Rs 10,776. While the basic pay for Level 6 officer is Rs 35,400 with 12% (DA + HRA) 8,496.
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What is the Dearness Allowance?
Dearness Allowance (DA is part of the Basic Salary paid to government employees. DA is directly linked to the cost of living (CoL) adjustment allowance paid to government employees and pensioners linked to the Consumer Price Index to offset the impact of inflation. DA is fully taxable. The government routinely revises DA provided to employees.
DA is decided on the basis of the city that varies depending on the employee's office location. DA will be more for the employees in the urban area. While for semi-urban areas and villages employees DA will be less.
How is DA calculated:
Percentage of DA = {(Average of All-India Consumer Price Index for the past 12 months (Base year 2001=100) -115.76)/115.76}x 100.
What is HRA?
There are 3 categories - X, Y and Z for this;
X Category: It includes cities with a population of more than 50 lakh and employees living here are getting a maximum of 24% HRA per month.
Y Category: The government servants living here are getting a maximum of16 per cent
Z Category: The government servants living here are getting a maximum of 8% HRA.
DA Vs HRA
Just like DA, House Rent Allowance (HRA) is also an important component of the employee's salary given by the employer to help fulfil the housing needs of its employees.
However, HRA is provided to both - public sector and private sectors employees. Calculation of DA is based on the specific percentage of Basic Salary, which is then added to HRA in Basic.
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