DA Hike: Every 6 months you must also be hearing that dearness allowance is going to increase. also increases. The employees of the central government are also eagerly waiting for it. Because, when inflation increases, the allowance also increases in the same proportion and there is a tremendous increase in the salary of the employees.
DA Hike: Every 6 months you must also be hearing that dearness allowance is going to increase. also increases. The employees of the central government are also eagerly waiting for it. Because, when inflation increases, the allowance also increases in the same proportion and there is a tremendous increase in the salary of the employees. For this it is necessary to understand the calculation of dearness allowance.
Many components are included in the salary of the employees. One of these is the fitment factor, the other is appraisal. Basic salary is decided on the basis of these two. Because, if the fitment increases then the salary will automatically increase. At the same time, if there is an appraisal, there will also be a salary revision. But, the new news is that there is going to be a tremendous increase in the basic salary of the employees without the fitment factor and appraisal.
Dearness allowance is added to the basic salary
How will there be a tremendous increase in the basic salary? For this, let’s go in a little flashback. When the government implemented the 7th Pay Commission in the year 2016, the dearness allowance was reduced to zero. A new base year has been fixed for the calculation. 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 once again by merging the dearness allowance with the basic salary and then the dearness allowance will become zero.
Why dearness allowance will be 0?
Now the question comes why would this happen? Actually, in the memorandum of the year 2016, it has been told that as soon as the Dearness Allowance (DA) will be 50% i.e. 50% of the basic salary, then it will be reduced to zero. Means after being zero, the dearness allowance which is being received now at 42 percent, 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 with the basic salary. With this, the employees will not have to wait long for their salary revision. Earlier the dearness allowance used to exceed 100 per cent. This was the formula in the sixth pay.
So how much will the salary of central employees increase?
At present, there is a basic salary of Rs 18000 on pay-bed level-1. This is the minimum basic. If you see its calculation, then in total, you get Rs 7560 as dearness allowance. But, if you see the same calculation on 50% dearness allowance, then you will get 9000 rupees. Now here comes the catch.
As soon as there is 50 percent DA, it will be reduced to zero and added to the basic salary. Means the salary of Rs 18000 will increase by Rs 9000 to reach Rs 27000. After this, the dearness allowance will be calculated at Rs.27,000. If after 0, if DA increases by 3 percent, then 810 rupees a month will increase in his salary.
So till when will the basic salary of Rs 9000 increase?
At present, the dearness allowance of central government employees is 42 per cent. 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, the 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 monitored.
If it increases by 4 percent, then the dearness allowance will reach 50 percent. If it increases by 3 percent, it will be 49 percent. In case of 50%, the dearness allowance will become zero from January 2024 itself. Means from July 2024, dearness allowance will be calculated only on the increased basic salary. If 49 per cent remains, then one has to wait till July 2024.
4 percent dearness allowance will increase again
The dearness allowance (DA Hike) of central employees was increased by 4 percent in March. This came into effect from January 2023. Now the next dearness allowance is to be announced from July 2023. It is expected that there will also be an increase of 4 percent in this. If experts are to be believed, the way inflation is and the figures of CPI-IW for two months have come, it is clear that dearness allowance will also increase by 4 percent in the coming days. Means dearness allowance can be 46% in July.
Why will dearness allowance be made zero?
Whenever the 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% DA received by the employees should be added to the basic salary, but this is not possible. Financial condition 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 with the basic pay. Hence the coefficient of 6th pay scale was 1.87. Then new pay band and new grade pay were also created. But, it took three years to deliver it.
