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News of central employees: This year is going to be very tremendous for the central employees. Actually, the increase in dearness allowance will happen twice a year. But apart from this they will also get many other gifts. Before the festival of Holi, the government has approved 4 percent increase in Dearness Allowance (DA Hike). Apart from this, there has also been a significant increase in HRA. At the same time, discussion has started that if Dearness Allowance (DA) now becomes 50 percent then it will be reduced to zero. The biggest benefit from this will be in the form of basic salary to the employees. Let us understand how…
Dearness allowance will be added to the basic salary
How will there be a huge increase in basic salary? For this let's go into a little flashback. In 2016, when the government implemented the 7th Pay Commission, dearness allowance was reduced to zero. A new base year was decided for calculations. Due to zero DA, 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 adding the dearness allowance to the basic salary and then the dearness allowance will become 0.
Why will dearness allowance become 0?
Now the question comes that why would this happen? In fact, in the memorandum of 2016, it has been said that as soon as Dearness Allowance (DA) reaches 50 percent i.e. 50 percent of the basic salary, it will be reduced to zero. This means that after it becomes zero, the calculation of the currently available dearness allowance will start again. If this happens then dearness allowance will be added to the basic salary. This will lead to revision in the salaries of the employees. The advantage of this will be that employees will not have to wait too long for salary revision. Earlier dearness allowance was more than 100 percent. DA continued to increase like this till the Sixth Pay Commission.
There will be a huge increase in the basic salary of central employees
At present the basic salary at pay-bed level-1 is Rs 18000. This is the most minimal basic. If we look at its calculations, the total amount currently received as dearness allowance is Rs 7560. But, if we look at the same calculation at 50 percent dearness allowance, 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 the calculation of dearness allowance will be Rs 27000. If DA increases by 3% after becoming 0, his salary will increase by Rs 810 per month.
When will basic salary increase?
Dearness allowance of central government employees has been increased by 50 percent. It has been implemented from January 1, 2024. Now the next amendment is to be done in July 2024. This means that after July the rate of dearness allowance may start from 0 to 3 or 4 percent. This means that before deciding the rate of dearness allowance for July 2024, the government can approve merging 50 percent DA with the basic salary. As soon as the merger takes place, there will be a direct increase of Rs 9000 in the salary of pay-bed level-1 employees.
Dearness allowance will once again increase by 4 percent
In March, dearness allowance (DA Hike) of central employees was increased by 4 percent. It came into effect from January 2023. Now the next dearness allowance is to be announced from July 2023. It is expected that this too will increase by 4 percent. According to experts, the way inflation is and the CPI-IW figures for two months have come, it is clear that dearness allowance will also increase by 4 percent in the coming days. Meaning, dearness allowance may be 46 percent in July.
DA was merged for the first time in 2016
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. Earlier in the year 2006, when the sixth pay scale was introduced, 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 became 1.87. Then new pay band and new grade pay were also created. But, it took three years to deliver it.