How Much Salary Govt Employees Can Expect In July If DA Increases

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An increase of 4% in DA implies that the employees can expect an increase of Rs 2,000 if their salary is Rs 50,000.

July is significant for the employees working in the institutions of the central government and the state governments. The dearness allowance (DA) and the salary of these employees will witness significant growth in July. The government increased these incentives in January and can again increase them in July. The central government increased the dearness allowance by 4 per cent to 50 per cent in January. There are rumours that the allowance can be increased by a similar percentage (4) in July as well.

Now, many government employees will want to know the profit margin they can earn with this increase in the allowance. For example- if the basic salary is Rs 50,000, then the dearness allowance will increase by 4 per cent i.e. Rs 2,000. This implies that the employees can expect an increase of Rs 2,000 in the form of a dearness allowance in their July salary.

Salary increments in the public sector are generally around 3 to 4 per cent. If this figure is considered as the basis, then there can be an increase of 3 per cent. This can be best understood by this example. For example- if someone’s basic salary is Rs 50,000, then it will be increased by Rs 1,500 with a 3 per cent increment. That means the government workers can also get a benefit of Rs 1,500 as an increment in their July salary.

How does the government calculate the DA Hike?

The DA and DR hike is decided based on the percentage increase in the 12-month average of the All-India CPI-IW. Though the central government revises the allowances on January 1 and July 1 every year, the decision is generally announced in March and September/October. In 2006, the central government revised the formula to calculate the DA and DR (Dearness Relief) for central government employees and pensioners.

House Rent Allowance

Besides the dearness allowance and the salary increment, there is a provision of HRA (House Rent Allowance) for the employees. It is a part of the employee’s salary provided by the employer for the expenses incurred towards rented accommodation. One can claim HRA exemption only if he or she is residing in a rented house.