7th pay commission DA hike: Finally dearness allowance of central employees increased by 4 percent. Salary will also increase from November. But, was the happiness limited to this during the festive season? Not at all, more good news is still waiting for the central employees. They will get more wonderful gifts in the coming days.
7th pay commission hike: Central employees have received very good news. Finally, dearness allowance of central employees increased by 4 percent. On Wednesday, the cabinet approved it and the dearness allowance of the employees reached 46 percent. But, was the happiness limited to this during the festive season? Not at all, more good news is still waiting for the central employees. They will get more wonderful gifts in the coming days.
Will have to wait for the next allowance
Employees’ allowance has been implemented from July 1, 2023. But, now the discussion has started about the next allowance. There are two reasons for this. Firstly, because the numbers for the AICPI index have just come for two months. A tremendous increase has been seen in this. However, this is not the final increase. For this we will have to wait for the year 2024. Because, the inflation index numbers from July to December will decide how much the DA will increase in the coming year. But, the numbers for July and August have come. A significant increase has also been seen in this.
What is the second big reason?
The second major reason for the discussion regarding dearness allowance for the year 2024 is 50 percent DA. Because, there is a provision to make it zero only when this happens. There are also Lok Sabha elections in the coming year. Therefore, a big gift can be given to the employees. If there is 50 percent dearness allowance, there is a rule to merge it into basic. If this happens, there will be a huge increase in the salary of the employees by at least Rs 9000.
What is the AICPI Index number?
Labor Bureau has released the AICPI index numbers. Its numbers have come for two months (July, August). The September number will come on 31st October. Till now the index has reached 139.2 points. On this basis the total DA has reached 47.97%. Based on the numbers till June, dearness allowance was increased by 4 percent. At that time the total dearness allowance score was 46.24 percent. Now the numbers of September, October, November and December will decide how much dearness allowance will increase from January 2024. According to experts, by January 2024 dearness allowance will cross the 50 percent mark.
What will happen if DA is 50 percent?
According to the 7th pay commission, as soon as the dearness allowance of central employees crosses the 50 percent mark, the dearness allowance will be reduced to zero. This means that the calculation of dearness allowance will start from 0 and whatever amount is earned according to 50 percent will be merged into the basic salary. It was reduced to zero by the government by implementing the 7th Pay Commission in the year 2016. After this, now 50 percent of it will be revised again to zero.
Salary will increase by Rs 9000
As soon as dearness allowance reaches 50 percent, it will be reduced to zero and the amount up to 50 percent will be added to the basic salary i.e. minimum salary. Suppose the basic salary of an employee is Rs 18000, then he will get 50 percent DA of Rs 9000. But, if DA is 50 per cent and then dearness allowance will be reduced to zero by adding it to the basic salary, then Rs 9000 will be added to the basic salary.
Why is dearness allowance made zero?
Whenever a new pay scale is implemented, the DA received by the employees is added to the basic salary. Experts say that as a rule, 100 percent DA received by employees should be added to the basic salary, but this is not possible. Financial situation comes in the way. However, this was done in the year 2016. Before that, in the year 2006, when the sixth pay scale came, at that time 187 percent DA was being given in the fifth pay scale till December. The entire DA was merged into the basic pay. Therefore the coefficient of the sixth pay scale was 1.87. Then new pay band and new grade pay were also created. But, it took three years to deliver it.
