DA Hike January 2024 7th Pay commission: Central employees will now be paid dearness allowance at the rate of 50 percent from January 1, 2024. This has become clear from the December AICPI index data. However, in December the index number fell by 0.3 points to 138.8 points.
7th Pay Commission latest news: There is good news for central employees. The dearness allowance number has been confirmed. Now employees will get 50 percent dearness allowance. AICPI index has been released by the Labor Bureau. According to the index, 50 percent of dearness allowance has been confirmed. However, a slight decrease has been recorded in the index. But despite this, there has been no impact on dearness allowance. The dearness allowance figure has crossed 50 percent. This is the fourth consecutive time that dearness allowance has increased by 4 percent.
Decline in AICPI index
Central employees will now be paid dearness allowance at the rate of 50 percent from January 1, 2024. This has become clear from the December AICPI index data. However, in December the index number fell by 0.3 points to 138.8 points. But, this did not make any significant difference in the dearness allowance figures. As expected, dearness allowance crossed 50 percent. Now dearness allowance has become 50.28 percent. But, the government decimal is below 0.50, so only 50 percent will be final. It is certain to increase by 4 percent.
What changed in AICPI Index?
When will you get the benefit of increased DA?
It has been confirmed that dearness allowance will now be available at the rate of 50 percent. But, it will not be announced yet. If it is an election year, it will be approved even before the dates of Lok Sabha elections are announced. The decision on increase in dearness allowance is taken in the Union Cabinet meeting. Usually the government announces this around Holi in March. This time too it can be approved in March itself. But, employees will get this benefit from January 1, 2024. Meaning the new dearness allowance will be applicable from January 1 only. Apart from this, it is possible to pay it in the salary of March along with the arrears of January and February.
DA will become 0 after 50 percent
Central employees will get 50 percent DA from January 2024. But, after this the dearness allowance will be reduced to zero. After this the calculation of dearness allowance will start from 0. 50 percent DA will be added to the basic salary of the employees. Suppose if the minimum basic salary of an employee according to his pay band is Rs 18000, then 50 percent of Rs 9000 will be added to his salary.
Why will dearness allowance be reduced to 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. 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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