DA Hike: The coming year is going to be very wonderful for the central employees. There can be a tremendous increase in his salary. There are many reasons for this, including the increase in dearness allowance, change in fitment factor and HRA revision.
DA Hike: The coming year is going to be very wonderful for the central employees. There can be a tremendous increase in his salary. There are many reasons for this, including the increase in dearness allowance, change in fitment factor and HRA revision. Apart from this, there is going to be a tremendous increase in the basic salary of the employees. Full details of how this increase will happen have been given.
Let us tell you, the Dearness Allowance (DA) for the Central Government employees was earlier calculated on the basis of Consumer Price Index (AICPI) with the base year 2001, but from September 2020, the Central Government has changed the base year for the calculation of Dearness Allowance. Changed and implemented the new Consumer Price Index (AICPI) of 2016.
How much dearness allowance can increase from January 2023?
For central employees, 4% dearness allowance is applicable from January 2023. Now the next revision is to be done from July 2023. In such a situation, the biggest question is that how much increase is expected this time. The change in the numbers of the new Consumer Price Index (AICPI) will decide how much the dearness allowance will now increase. So far the total DA score has reached 133.3 points. Means 44.46% dearness allowance has been done. This figure is only till March. The April number will be declared at the end of May. There is a possibility of a boom in this too. Even if there is no bounce, the DA score will increase. Roughly, the dearness allowance will be 45 per cent. But, even after this the figures for May and June are yet to come. It is expected to increase further by 1%.
What is the current dearness allowance for central government employees?
The current DA for central government employees is 38%. If there is an increase of 4 percent in this, then it will reach 46 percent. Due to this, there will be a big jump in the salary of the employees. For this, we will have to wait for three months. The whole picture will be clear only after the numbers of April, May and June.
Has the government revised the 7th CPC fitment factor?
There is no change in 7th CPC fitment factor. At present, under the fitment factor, the employees are getting salary according to 2.57 times. However, there has been a demand to increase it for a long time. At present, the basic salary at level 1 is Rs 18000. It was decided on the basis of fitment factor only. If the fitment factor is increased, then the basic salary will also increase. It can be increased to 3 times or 3.67 times.
How else can the basic salary of central employees increase?
There will be a bumper increase in the salary of central employees in the year 2024. Because, in this year the dearness allowance can cross 50 percent. If there is a 4 percent increase in July 2023, then the dearness allowance will be 46 percent. If DA increases rapidly by 4 percent even in January 2024, then dearness allowance will reach 50 percent. In such a situation, the total dearness allowance will be reduced to zero (0). When the government had changed the base year, it had also implemented this rule that if there is 50% dearness allowance, it would be made zero and the money of dearness allowance would be added to the basic salary of the employees. After this dearness allowance will start from zero.
There will be a big jump in HRA of central employees
According to the 7th Pay Commission, if the dearness allowance becomes zero, then it has to be added to the basic salary. But, the revision of HRA will also happen on 50% DA Hike only. According to a circular of DoPT, there will be an increase of 3 percent in HRA if the dearness allowance is 50 percent. HRA is given in three categories. The existing rates of HRA are 27%, 18% and 9%. HRA rates were fixed at 27%, 18% and 9% when DA crossed 25%. The next revision in house rent allowance will be 3%. The maximum rate of HRA will increase from the existing 27 percent to 30 percent. But, this will happen when the dearness allowance revise will cross 50%.
How much HRA will increase in which category?
According to the memorandum, HRA will be 30%, 20% and 10% when DA crosses 50%. The category of House Rent Allowance (HRA) is according to X, Y and Z class cities. The central employees who fall in the X category are getting 27% HRA, which will be 30% if DA is 50%. At the same time, for Y class people, it will increase from 18 percent to 20 percent. For Z class people, it will increase from 9 percent to 10 percent.
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