Central government employees news: 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.
Central government employees news: This year is going to be very tremendous for the central employees. Actually, increase in dearness allowance will happen twice in a year. But apart from this, they will get many other gifts also. 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 basic salary
How will there be a huge increase in basic salary? For this let’s go into a little flashback. When the government implemented the 7th Pay Commission in 2016, dearness allowance was reduced to zero. A new base year was decided for calculations. Due to DA becoming zero, 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 merging the dearness allowance with 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? Actually, in the memorandum of the year 2016, it has been said that as soon as the Dearness Allowance (DA) will be 50 percent i.e. 50% of the basic salary, then it will be reduced to zero. This means that after becoming zero, the calculation of the dearness allowance currently being received will start again. If this happens, dearness allowance will be merged into basic salary. This will lead to revision in the salaries of the employees. Its advantage is that employees will not have to wait too long for revision in their salary. Earlier dearness allowance used to exceed more than 100 percent. Till the Sixth Pay Commission, DA kept increasing like this.
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 calculation, the total amount currently available as dearness allowance is Rs 7560. But, if we look at the same calculation at 50 percent dearness allowance, then 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 dearness allowance will be calculated at Rs 27000. If DA increases by 3% after becoming 0, then their salary will increase by Rs 810 per month.
When will the basic salary increase?
Dearness allowance of Central Government employees has been increased to 50 percent. It has been implemented from January 1, 2024. Now the next revision is to be held in July 2024. This means that after July, the rate of dearness allowance can 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 increase again by 4 percent
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 this too will increase by 4 percent. According to experts, the way the inflation situation is and the CPI-IW figures of two months have come, it is clear that in the coming days the dearness allowance will also increase by 4 percent. Meaning dearness allowance may be 46% 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. Before that, in the year 2006, when the sixth pay scale came, at that time 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 was 1.87. Then new pay band and new grade pay were also created. But, it took three years to deliver it.
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