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DA Hike: Big news! There will be a direct increase of ₹ 9000 in the salary of central employees, know the update

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DA Hike latest news today: Not only has the dearness allowance of central employees increased, but now their salary is going to increase directly. As soon as dearness allowance is approved, there will be a huge jump in their salary. In one stroke, the salary of the employees will increase by Rs 9000.


DA Hike: This year has brought tremendous gifts for central employees. They will be paid 50 percent dearness allowance from January. This has been decided from the AICPI index. But, there is still time for its announcement by the Central Government. Meanwhile, there is another good news. Not only has the dearness allowance of central employees increased, but now their salary is going to increase directly. As soon as dearness allowance is approved, there will be a huge jump in their salary. In one stroke, the salary of the employees will increase by Rs 9000. Actually, this is going to happen because of a rule of the Central Government. This rule was made in the year 2016. Now we wait for March. Because, DA Hike is expected to be approved by the Union Cabinet in March itself. But, does this indicate the formation of the 8th Pay Commission?

What is the rule to increase the salary of employees?

Dearness allowance of central employees is increased every six months. At present, central employees are getting dearness allowance at the rate of 46 percent. From January 2024, dearness allowance will increase to 50 percent. After this, as per the rules, this will be made void. Why? Now the rules made by the Central Government apply here. In the year 2016, the government had made a rule that as soon as dearness allowance reaches 50 percent, it will be reduced to zero.

How will the basic salary increase?

How will there be a huge increase in basic salary? For this let’s go into a little flashback. When the government implemented the 7th Pay Commission in 2016, dearness allowance was reduced to zero. A new base year was fixed for calculations. Due to zero dearness allowance, the employees got the benefit that the previous dearness allowance was added to their basic salary. Now something similar is going to happen once again. There is a plan to increase the salary by once again merging the dearness allowance into the basic salary. Meaning, has the time come to constitute the 8th Pay Commission?

Dearness allowance will become zero (0)

Now the question comes that why would this happen? In fact, in the memorandum of the year 2016, it has been said that as soon as the Dearness Allowance (DA) reaches 50 percent i.e. 50% of the basic salary, it will be reduced to zero. Meaning, after becoming zero, the current dearness allowance will start back from 1 percent, 2 percent. This will happen because, as soon as 50 percent dearness allowance (DA hike) is reached, it will be merged into the basic salary. With this, employees will not have to wait long for their salary revision. Earlier dearness allowance used to exceed more than 100 percent. This was the formula for the sixth salary.

Salary of central employees will increase by Rs 9000

At present, the basic salary at pay-bed level-1 is Rs 18000. This is the most minimal basic. If we look at its calculation, the total amount currently available as dearness allowance is Rs 7560. But, if we look at the same calculation at 50 percent dearness allowance, then we will get Rs 9000. Now here comes the catch. As soon as 50 percent DA is reached, it will be reduced to zero and added to the basic salary. Meaning, the salary of Rs 18000 will increase by Rs 9000 to Rs 27000. After this dearness allowance will be calculated at Rs 27000. If DA increases by 3% after becoming 0, then their salary will increase by Rs 810 per month.

When will central employees get gifts?

At present, the dearness allowance of Central Government employees is 42 percent. Now the next revision is to be held in July 2023, in which there may be an increase of 4 percent. This means that after July, dearness allowance will increase at the rate of 46 percent. In such a situation, the revision of dearness allowance for January 2024 will have to be kept an eye on. If it increases by 4 percent then dearness allowance will reach 50 percent. If it increases by 3 percent then it will be 49 percent. In case of 50%, dearness allowance will become zero from January 2024 itself. This means that from July 2024, dearness allowance will be calculated only on the increased basic salary. If it remains at 49 percent then we will have to wait till July 2024.

Why is dearness allowance made zero?

Whenever a new pay scale (Central pay commission) 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 3 years to deliver it.

Pravesh Maurya
Pravesh Maurya
Pravesh Maurya, has 5 years of experience in writing Finance Content, Entertainment news, Cricket and more. He has done BA in English. He loves to Play Sports and read books in free time. In case of any complain or feedback, please contact me @ businessleaguein@gmail.com
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