Employees will receive increased dearness allowance from July 01, 2023. Inflation related figures have been released by the government on the last date of last month.
7th Pay Commission: The wait for central employees to get dearness allowance (DA Hike) in the festive season may end. Official information has not been given yet by the Central Government. But, according to sources, the government can give DA to the employees between Durga Puja and Diwali.
It is being told that this time there is going to be an increase of about 4 percent in the dearness allowance of the employees. Employees will receive increased dearness allowance from July 01, 2023.
Inflation related figures have been released by the government on the last date of last month. In such a situation, it is understood that the hike in DA is going to be huge. If central employees get four percent dearness allowance, then DA will reach 42 percent to 46 percent. Earlier in July, there was a big jump of 3.3 points in the AICPI index numbers. After this, 3.3 percent DA hike was expected. But now inflation has increased by four percentThere is hope of getting DA .
More than one crore employees and pensioners will get benefits
By giving dearness allowance to the employees during festivals by the Central Government, about one crore employees and pensioners will benefit from it. At present there are 47.58 lakh central employees and about 69.76 lakh pensioners.
However, no official announcement has been made yet by the Central Government regarding DA. Considering the demand of the employees, it is understood that dearness allowance may increase till Diwali.
What is dearness allowance?
Dearness Allowance ( DA ) is a type of allowance which is given to government employees and pensioners in the form of increase in their salary or pension according to inflation. Its objective is that when inflation increases, their salary or pension should be increased to improve their economic conditions.
Its objective is that people are not only linked to the basic salary, but their income is adjusted to their economic needs and inflation. The basic basis of dearness allowance is a special kind of living wage which is called “Cost of Living”. Its basic objective is that a person can properly balance his cost of living based on his personal income.
Governments reform the dearness allowance from time to time so that the use of salary and pension mechanism can help the individuals in saving the reasonable cost of living.
What is AICPI Index?
The full name of AICPI index is ( All India Consumer Price Index ). It is an important economic indicator which is used to measure the inflation experienced in India. This index is related to inflation perceived by the Indian Government for business and financial services and measures consumer spending on various items like apparel, food, preventive and medicine etc.
The specialty of AICPI index is that it takes into account the expenses of commercial and poor class consumers and determines the amount of inflation based on them. On the basis of these indices, the Government of India reviews and optimizes various pay scales, allowances and pensions. This index is important to understand the inflationary conditions in the Indian economy and also helps in planning social and economic schemes.
The Government of India usually releases two major AICPI indices:
- AICPI (IW) for summer season : Which measures the inflation experienced from April to September.
- AICPI (IW) for winter season : Which measures the inflation experienced from October to March.
How to get dearness allowance from AICPI Index
Dearness allowance is available from AICPI index. Indian Government employees are used to adjust their salaries according to inflation. It is a type of allowance that employees get as a specific part of their salary. In this method, dearness allowance is given to the employees in the form of a kind of salary increase so that they do not have to adjust to the increase in inflation along with the salary.
There are some main stages that are passed:
Preparation of Index: AICPI index is prepared which measures the realized expenses of various apparel, food, preventive, drug, and other consumer goods and services. This expenditure is made by people of different population groups.
Calculation of dearness allowance: The allowance is calculated on the basis of AICPI index. If the index increases, the dearness allowance increases and if the index decreases, the allowance also decreases.
Government Decision: On the basis of policies and methods laid down by the government, dearness allowance is determined.
Inclusion in salary: Dearness allowance is included in salary and is given to employees as a surplus amount over and above their salary.
