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7th Pay Commission Latest News: A new update has come on the Dearness Allowance (DA) of central employees. The Central Government has increased the Dearness Allowance (DA Hike) to 50 percent for January 2024. But, now its calculations are changing. Dearness allowance to be received from July 2024 will be calculated from zero (0). But, its number will be decided on the basis of AICPI index between January and June. The January AICPI numbers were released in February. According to this, dearness allowance has increased by 1 percent. Meaning it has become 51 percent. But, the AICPI index numbers for February have not been released yet. In such a situation, the question is whether the process of reducing it to zero has started?
calculation will start from zero
The mathematics of Dearness Allowance (DA) of central government employees is going to change in the year 2024. Actually, from January 1, employees are getting 50 percent DA. According to the rules, after receiving 50 percent dearness allowance, it will be merged with the basic salary and its calculation will start from zero. But, the Labor Bureau has not yet given any clarity on this. This means that at present the calculation of dearness allowance will continue at more than 50 percent. But, when will it be reduced to zero?
50 percent DA will be merged into basic salary
While implementing the 7th Pay Commission in 2016, the government had reduced Dearness Allowance (DA) to zero. According to the rules, as soon as the dearness allowance reaches 50 percent, it will be reduced to zero and the money that the employees will get as allowance at the rate of 50 percent will be merged into the basic salary i.e. minimum salary. will go. Suppose the basic salary of an employee is Rs 18000, then he will get 50 percent DA of Rs 9000. But, when DA reaches 50 percent, it will be added to the basic salary and dearness allowance will again become zero. This means that the basic pay will be revised to Rs 27,000.
Why will dearness allowance be 0?
Whenever a new pay scale 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.
When will dearness allowance become zero?
According to experts, the new dearness allowance will be calculated in July. Because, the government increases dearness allowance only twice a year. Approval for January was received in March. Now the next amendment is to be implemented from July 2024. In such a situation, dearness allowance will be merged and it will be calculated from zero. Meaning, from January to June 2024, the AICPI index will decide whether the dearness allowance will be 3 percent, 4 percent or how much. As soon as this situation is cleared, 50 percent dearness allowance will be added to the basic salary of the employees.