7th Pay Commission: When will DA become 0 after 50% increase in dearness allowance of central employees

Central Government Employees News: The wait for dearness allowance for central employees is over. On Thursday, the Union Cabinet approved 4 percent increase in Dearness Allowance (DA Hike). The result is that now the dearness allowance of central government employees has increased to 50 percent. But, now the question is arising whether after the dearness allowance reaches 50 percent, it will have to be reduced to zero. But, when will this happen and how will it be merged and when will the government announce it or issue a notification.

calculation will start from zero

The mathematics of Dearness Allowance (DA) of central employees is going to change in the year 2024. Actually, the picture of dearness allowance which will be implemented from January 1 has become clear. Employees are to get 50 percent DA. Central employees will get 50 percent dearness allowance from January 2024. The rule says that after receiving 50 percent dearness allowance, it will be merged into the basic salary and its calculation will start from zero. But, the government has not yet given any clarification 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?

When will the mathematics of dearness allowance change?

While implementing the 7th Pay Commission in the year 2016, the government had reduced dearness allowance 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. However, for this the government may also have to make changes in the fitment.

Why will dearness allowance become zero?

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.

Now 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 dearness allowance will be 3 percent, 4 percent or more. As soon as this situation is cleared, 50 percent dearness allowance will be added to the basic salary of the employees.

Financial burden on government increases

At the time of the Sixth Pay Commission in 2006, the new pay scale was implemented from 1 January 2006, but its notification was issued on 24 March 2009. Due to this delay, 39 to 42 months of DA arrears were paid. Government in 3 installments in the financial years 2008-09, 2009-10 and 2010-11. A new pay scale was also created. In the fifth pay scale of 8000-13500, 186 percent DA on 8000 was Rs 14500. Therefore, after adding both, the total salary became Rs 22 thousand 880. In the sixth pay scale, its equivalent pay scale was fixed at Rs 15600 – 39100 plus 5400 grade. In the sixth pay scale, this salary was Rs 15600-5400 plus Rs 21000 and on January 1, 2009, after adding 16 percent DA of Rs 2226, the total salary was fixed at Rs 23 thousand 226. The recommendations of the Fourth Pay Commission were implemented in 1986, the Fifth in 1996 and the Sixth in 2006. The recommendations of the Seventh Commission came into effect in January 2016.