7th Pay Commission DA Hike 50%: There is a rule of dearness allowance. When the government implemented the 7th Pay Commission in the year 2016, then dearness allowance was made zero at that time. According to the rules, as soon as the dearness allowance reaches 50 per cent, it will be reduced to zero.
7th Pay Commission DA Hike 50%: Dearness allowance is increased twice every year for central employees. But, how much this increase will be depends on the order of inflation. Many countries of the world are struggling with inflation at this time. In India too, the rate of inflation seems to be increasing rapidly. The country’s Central Bank (RBI) has also expressed apprehension that inflation is not under control. Inflation is likely to pick up in the coming days. This is the reason why RBI is going to do its monetary policy ahead of time in November. Rising inflation may not be good for the country. But, there is bound to be an increase in the allowances received by central employees in proportion to inflation. Well, even if inflation is left aside, dearness allowance for the employees is bringing salary increment in the coming times. Let’s understand how…
Will get 4 percent gift next year
Recently, the dearness allowance (DA Hike) of central employees has increased by 4 percent. This increase came into effect from July 2022. Now the next dearness allowance is to be implemented from January 2023. It is expected that the next increase will also be 4 percent. According to experts, the way the situation of inflation is, it is clear that in the coming days dearness allowance will also increase by 4 percent. At present, inflation is very low in the country as compared to the world, but by January 2023 the picture may be different. In such a situation, if the dearness allowance increases by 4 percent, it will reach 42 percent.
Basic salary will increase as soon as there is 50 percent dearness allowance
There is a rule of dearness allowance. When the government implemented the 7th Pay Commission in the year 2016, then dearness allowance was made zero at that time. According to the rules, as soon as the dearness allowance reaches 50 per cent, it will be made zero and according to 50 per cent, the money which the employees will be getting as allowance will be added to the basic salary i.e. minimum salary. Suppose the basic salary of an employee is Rs 18000, then he will get Rs 9000 of 50% DA. But, after DA is 50%, it will be added to the basic salary and again the dearness allowance will be reduced to zero.
When is dearness allowance made zero?
Whenever the new pay scale is implemented, the DA received by the employees is added to the basic salary. Experts say that as a rule, 100% DA received by the employees should be added to the basic salary, but this is not possible. Financial condition 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 received till December in the fifth pay scale. The entire DA was merged with the basic pay. Hence the coefficient of 6th pay scale was 1.87. Then new pay band and new grade pay were also created. But, it took three years to deliver it.
Financial burden on the government increases
At the time of the Sixth Pay Commission in the year 2006, the new pay scale was implemented from January 1, 2006, but its notification was issued on March 24, 2009. Due to this delay, DA Arrear of 39 to 42 months was paid to the government in 3 installments in 3 financial years 2008-09, 2009-10 and 2010-11. A new pay scale was also created. In the fifth pay scale of 8000-13500, 186 percent DA on 8000 was Rs 14500. Therefore, on adding both, the total salary was 22 thousand 880. In the sixth pay scale, its equivalent pay scale was fixed at 15600 -39100 plus 5400 grade pay. In the sixth pay scale, this salary was 15600-5400 plus 21000 and on adding 16 percent DA 2226 on January 1, 2009, the total salary was fixed at Rs 23 thousand 226. The recommendations of the Fourth Pay Commission were implemented in 1986, the fifth in 1996, and the sixth in 2006. The recommendations of the Seventh Commission came into force in January 2016.
See how much salary will increase here
3% HRA will also increase
The next revision in House Rent Allowance will also be of 3%. HRA will increase from the existing maximum rate of 27 per cent to 30 per cent. But, this will happen only when the Dearness allowance revise will cross 50%. 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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