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7th Pay Commission DA Hike: There is good news for central employees. The calculation of their dearness allowance (DA hike calculation) will change from July 2024. But, it is important to understand why this is happening and how it is good news. Central government employees are currently getting 50 percent dearness allowance (DA). This is applicable from January 2024. The next increase in dearness allowance will be applicable from July 2024. However, it may take September until it is approved. But, it will be implemented from July only. Now let us understand what will happen if the calculation is changed.
Counting will start from 0
The AICPI index numbers determining the Dearness Allowance (DA) score are to be released between January and June 2024. Of these, only the data for January 2024 has been revealed so far. These figures will decide how much the dearness allowance of central employees will increase. If dearness allowance is 50 percent then the calculation of dearness allowance which will be zero (0) will change. This calculation will start from 0 and further increments, for example 3-4 percent, will be calculated. According to Labor Bureau sources, changes in the calculations are certain. However, answers to all questions will have to wait till July 31, 2024.
Dearness allowance is decided by AICPI numbers
According to the 7th Pay Commission, dearness allowance for central employees is decided by the AICPI index i.e. CPI (IW). Labor Bureau releases it on the last working day of every month. However, this data has been delayed by a month. For example, data for January comes in at the end of February. The index numbers decide how much the dearness allowance will increase. A formula has been given to determine dearness allowance. For Central Government employees, the formula is [(पिछले 12 महीनों का अखिल भारतीय उपभोक्ता मूल्य सूचकांक (एआईसीपीआई) का औसत – 115.76)/115.76]×100. In this the bureau collects data on many things. On the basis of this the index number is decided.
Labor Bureau did not release data for 2 months
For calculation of CPI for Industrial Workers, AICPI number will be released on the last working day of every month. The event calendar for this has already been released. According to this, the CPI number for January was released on 29 February. The CPI number for February was to be released on March 28, but was not released. There itself. Even the March figures were not released on April 30. It is being told that the Labor Bureau does not have the figures for February. Therefore no further calculations have been done. The intention is also to collect all the data before July and release it finally. The numbers for the month of June will be released on 31st July. This number will decide by how much the dearness allowance should increase in comparison to the increase in inflation in six months.
Delay in releasing February figures
If we look at the current situation, till January the CPI (IW) number is at 138.9 points. Due to this, dearness allowance has increased to 50.84 percent. This will be counted as 51 percent. According to estimates, this figure may reach 51.42 in February. Experts are estimating that the next increase in dearness allowance will also be only 4 percent. But, it is too early to say whether it will be given 4 percent or 54 percent.
How will employees get the good news?
Experts clearly believe that it is not yet clear whether dearness allowance will be reduced to zero or not. The situation will be clear only when the final figures come in July whether it will be reduced to zero or the count will continue beyond 50. It will entirely depend on the government as to how and from where the dearness allowance will be calculated. But, meanwhile, the good news we were talking about is that as soon as it becomes zero, 50 percent of the dearness allowance will automatically be merged into the basic.
Minimum wage will increase by Rs 9000
If the calculation of dearness allowance starts from 0 from July, then the salary of central employees will increase by Rs 9000. This increase will be calculated on the minimum wage. If the basic salary of a central employee is Rs 18000, then his salary will increase to Rs 27000. Similarly, if the salary of an employee is Rs 25000, then his salary will increase by Rs 12500. This will be because, once the inflation allowance has been cancelled, it will be merged into the basic salary. However, the last time dearness allowance was reduced to zero was on January 1, 2016. At that time the recommendations of the 7th Pay Commission were implemented.