7th pay commission da hike: This is great news for the central employees taking salary under the 7th pay commission. Because, from January 2023 to June 2023, their dearness allowance is going to be announced soon. There can be an increase of 4 percent in this.
7th pay commission hike: Central employees have received very good news. There has been a huge jump in their dearness allowance. There has been a tremendous increase in the inflation index. However, this increase will not count now.
Will have to wait for the year 2024 for this. Because, the inflation index numbers from July to December will decide how much the DA will increase in the coming year. Let us tell you, the number of AICPI index of July 2023 has been released. There has been the biggest jump of 3.3 points in this.
What is the AICPI Index number?
Labor Bureau has released the number of AICPI index. There has been a jump of 3.3 points in this. June 2023 has reached 139.7 points as against 136.4 points. With the arrival of July numbers, the score of Dearness Allowance has increased to 47.14 percent.
Earlier it was at 46.24 per cent. However, its final number will be calculated after the data received till December 2023. It is clear from the increasing pace of inflation index that dearness allowance will cross the 50 percent mark by January 2024.
Big jump in dearness allowance
This is a great news for the central employees taking salary under the 7th Pay Commission. Because, from January 2023 to June 2023, their dearness allowance is going to be announced soon. There can be an increase of 4 percent in this. The current rate is 42 percent, which is applicable from January 2023.
An increase of 4 percent in this will be applicable from July 2023. After this, the next revision will be for January 2024, which will also be announced only then. But, his numbers have started coming. According to the numbers of the first month of July 2023, dearness allowance has crossed 47 percent.
What will happen if DA is 50 percent?
According to the 7th Pay Commission report, 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 the new pay scale is implemented, the DA received by the employees is added to the basic salary. Experts say that as a rule, 100% DA received by the 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 received till December in the fifth pay scale. 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.
