How to calculate DA in Salary for Central Government Employees
DA means dearness allowance part of the sum in provided basic salary. DA is provided by the Indian government in terms of percentages (%). It is to support the purchasing power of government employees in the long term. Government employees, public sector employees and pensioners are eligible for DA in their monthly salary.
Let's take an example for better understanding. Person A is a government employee whose basic salary is 25000/- per month. His expenses got increased upon house rent and groceries in 2 years. Making him less wealthy with no added benefit to his salary. This situation is termed the low purchasing power of an individual. The government ratified the bill for DA to stabilize inflation among government employees.
About DA Rate :
It is totally concerned with the individual costs of living. It does not stand as a stable metric and differs for every government employee. Just like purchasing capacity of persons differs from one place to another (urban to rural). The percentage rate tends to be revised 2 times per annum. Both state and central governments are entailed to increase the rate possibly in the months of January and July. Over 50 lakhs government employees and 62 lakh pensioners are likely to benefit from the current 38% DA rate.
How to calculate DA in Salary for Central Government Employees :
It's quite important to know how to calculate DA in Salary for Central Government Employees. The percentage tends to change every 6 months. We need to calculate certain components like DA, HRA and VA whenever we find a change in salary. Let’s take a look at How to calculate DA in Salary for Central Government Employees.
Let us assume person A is earning a basic salary of 40000/- per month. Provided Dearness Allowance on August 31st is 17%. So just calculate 17% in Rs. 40000.
17/100*40000 = Rs.6800
40000 + 6800 = Rs.46800
The total salary of A along with DA in August is Rs. 46800/-
Now, the DA got enhanced to 11% in the month of October. We need to add 11% DA to the previous basic salary as below.
Basic salary = 40000/-
DA = 17%+11% = 28%
28/100*40000 = Rs.11200
40000 + 11200 = Rs.51200
The total salary of A along with increased DA in October is Rs. 46800/-
Now technology has made life so much easier. One can find even online sources to calculate the DA instantly. For that one can browse for DA calculator for central government employees.
DA and DR in salary :
Some people might get confused between DA and DR in salary. Government employees who are currently in service period attain DA called dearness allowances. The people who retired from the service period attain DR known dearness relief from their pension.
One can calculate DA and DR from basic salary or monthly pension. For instance, a current government employee with a basic salary of Rs. 20000 will get 38% of the DA rate. His total salary along with DA would be
38/100*20000 = Rs. 7600
20000+7600 = Rs. 27600
Just like a pensioner with a minimum pension of 10000 would attain DR of 38%. His total salary along with DR would be
38/100*10000 = Rs. 3800
10000+3800 = Rs. 13800
Rules and Exemptions of DA :
Central government employees can attain DA only when it must be on certain terms. Those terms cover -
When the DA is provided only in the name of DP (dearness pay).
50% of DA should be contributed to RPF (recognized provident fund).
When DA is part of the leave salary.
When clear information is provided for DA.
These are a few exemptions on availing DA which is not on the term.
When it does not follow the above-mentioned 4 rules.
DA only in percentages does not count on the term. (It should clearly mention the amount obtained).
When provided only in the name of DA (not including any other additional information).
When DA is provided only in amount.
Eligibility of DA :
The people who are working under PSUs and government corporations are eligible. Along with pensioners who are retired from their service period. A government employee must have a fixed basic salary of Rs. 18000 The government employees are entitled to receive some fixed % of DA under all India service 1972 act.