7th pay commission hike: This is a great news for the central employees taking salary under the 7th Pay Commission. Because, their dearness allowance for the period from January 2023 to June 2023 is going to be announced soon. This may increase by 4 percent.
7th pay commission hike: Central employees have received very good news. There has been a huge increase in his dearness allowance. A tremendous increase has been seen in the inflation index. However, this increase will not be counted yet. Will have to wait for the year 2024 for this. Because, the inflation index numbers from July to December will decide how much the DA will increase in the coming year. Let us tell you, the AICPI index numbers for July 2023 have been released. The biggest jump has been 3.3 points.
What is the AICPI Index number?
Labor Bureau has released the AICPI index numbers. There has been a jump of 3.3 points. It has reached 139.7 points as against 136.4 points in June 2023. With the arrival of July numbers, the score of Dearness Allowance has increased to 47.14 percent. Earlier it was at 46.24 percent. However, its final number will be calculated after the data received till December 2023. It is clear from the increasing pace of inflation index that dearness allowance will cross the 50 percent mark by January 2024.
Big jump in dearness allowance
This is a great news for the central employees taking salary under the 7th Pay Commission. Because, their dearness allowance for the period from January 2023 to June 2023 is going to be announced soon. This may increase by 4 percent. The current rate is 42 percent, which is applicable from January 2023. This increase of 4 percent will be applicable from July 2023. After this, the next revision will be for January 2024, which will also be announced only then. But, his numbers have started coming up. According to the numbers of the first month of July 2023, dearness allowance has crossed 47 percent.
What will happen if DA is 50 percent?
According to the 7th Pay Commission report, as soon as the dearness allowance of central employees crosses the 50 percent mark, the dearness allowance will be reduced to zero. This means that the calculation of dearness allowance will start from 0 and whatever amount is earned according to 50 percent will be merged into the basic salary. It was reduced to zero by the government by implementing the 7th Pay Commission in the year 2016. After this, now 50 percent of it will be revised again to zero.
Salary will increase by Rs 9000
As soon as dearness allowance reaches 50 percent, it will be reduced to zero and the amount up to 50 percent 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 50 percent DA of Rs 9000. But, if DA is 50 per cent and then dearness allowance will be reduced to zero by adding it to the basic salary, then Rs 9000 will be added to the basic salary.
Why is dearness allowance made 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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