7th Pay Commission latest news 2024 – Central employees are going to get great news soon. Government employees have been waiting for the increase in dearness allowance for a long time. A report has revealed that there will be an increase of four percent in the dearness allowance of employees in the month of March. And this time the employees will get salary according to the new calculation. Let us know in detail in the news below-
Dearness allowance of central employees will increase in March. This will increase by 4 percent. The total dearness allowance will reach 50 percent. But, the calculations after this will change. After the DA increase in March, it will be calculated in a new way. The figures for the next dearness allowance calculation will start coming from February 29. The increase in dearness allowance hike in July 2024 (DA Hike Calculation) will be calculated using a new method or rather a new formula. There is a reason behind this, in fact after reaching 50 percent dearness allowance it will be reduced to zero (0).
There will be an increase in dearness allowance of central employees by-
Central employees are currently getting 46 percent dearness allowance. It is clear from the recent AICPI index data that this time also DA has increased by 4%. However, it is yet to be approved by the Union Cabinet. Employees will get the benefit of increased DA from April salary. But, it will be implemented from January 1, 2024. Meanwhile, the next preparations have started. After January, the next increase in dearness allowance will be in July 2024. There may be changes in the calculation of this dearness allowance. Because, after 50 percent dearness allowance, it will be reduced to zero and the calculation of new dearness allowance will start from 0.
Know what is Dearness Allowance (DA)
Central and state government employees get Dearness Allowance (DA) to improve their cost of living. Dearness allowance is calculated in proportion to inflation. DA is part of the salary structure as an allowance to the employee to improve his standard of living. Dearness Allowance (DA) is given to central employees and public sector employees and dearness relief to pensioners. The same structure applies in the states also.
DA is calculated from the new series of base year.
The Labor Ministry had also changed the formula for calculating dearness allowance after the implementation of the 7th Pay Commission in the year 2016. The Labor Ministry changed the base year of Dearness Allowance in 2016 and released a new series of Wage Rate Index (WRI-Wage Rate Index). The Labor Ministry said the new series of WRI with base year 2016=100 replaced the old series with base year 1963-65.
How is dearness allowance calculated?
The amount of dearness allowance is calculated by multiplying the current rate of dearness allowance of 7th Pay Commission by the basic pay. The current rate is 46%, if your basic pay is Rs 56,900 DA (56,900 x46)/100. Percentage of dearness allowance = Average of CPI of last 12 months – 115.76. Now whatever comes will be divided by 115.76. The number obtained will be multiplied by 100.
How to calculate how much DA will be given on salary?
For salary calculation under 7th Pay Commission (7th Pay Commission Salary hike), DA will have to be calculated on the basic salary of the employee. Suppose the minimum basic salary of a central employee is Rs 25,000, then his dearness allowance (DA calculation) will be 46% of Rs 25,000. 46% of Rs 25,000 i.e. total will be Rs 11,500. This is an example. Similarly, people with other salary structures can also calculate it according to their basic salary.
Is tax to be paid on dearness allowance?
Dearness allowance is fully taxable. Under the income tax rules in India, separate information about dearness allowance has to be given in the Income Tax Return (ITR). Meaning, the amount you receive in the name of dearness allowance is taxable and tax will have to be paid on it.
