7th Pay Commission Latest News: As we know that currently the central employees are getting the benefit of 34% DA, and DA is expected to increase once again in July, but the central government will soon consider abolishing the pay commission.
Still working. However, till now no official notice has come from the government in this matter. The Central Government is contemplating to prepare a new formula in place of the 8th Commission.
The latest update regarding Dearness Allowance (DA) is that it may increase in July 2022. If we look at inflation and industrial index, then dearness allowance can increase by about 5 percent. This will be the first time after the year 2019 that there will be an increase of 5 per cent in dearness allowance, but the special thing is that in July, the formula for calculating DA will also change.
The salary of a central employee with Level Matrix 1 to 5 can be at least 21 thousand. Also, by abolishing the pay scale, a new formula can be implemented in the year 2024. If this happens, the salary of all central employees will be incremented according to different levels.
Right now employees are getting 34 percent DA
It is worth noting that the DA of central employees is currently 34 percent and the change in the next dearness allowance has become a matter of discussion. With a steady rise in the AICPI index, a new formula may be implemented for computing Dearness Allowance. It is noteworthy that to improve the standard of living of central and state government employees, they are given dearness allowance. If inflation rises, there should be no difference in the standard of living of the employee. Relief of DA is given to government employees, public sector employees and dearness allowance to pensioners.
The AICP Index, an important factor in determining the DA, indicates the possibility of an increase in the DA of the central government. In the month of July, the government can bring some more good news for the employees. Now according to the latest media reports, there may be a 5% increase in DA in July. That is, the total DA can reach up to 39%. At present, there is no information about when this formula will be implemented. After the implementation of the new formula, employees and pensioners are going to get benefits.
New formula will be applicable for increase in salary of Central Government employees. There is good news for the central employees that after the 7th Pay Commission, the pay scale is going to end, and the new formula is going to be implemented for the increase in the salary of the central employees. According to the information, this formula can be implemented from the year 2024. After the 7th pay scale, the central government will give salary to its employees with the new formula.
At present, central employees are taking benefits of salary as per 7th Pay Commission from April 2022. At present, the central government has not issued any official notice regarding this. After the implementation of the new formula, the salary of all the employees will increase according to their level. With the implementation of the new formula, the salary of the employees will be increased according to their performance linked increment and for this reason it can also be named as Automatic Pay Revision. Along with this, salary/pension will automatically increase if DA is more than 50%. Apart from this, the salary of time-to-time employees and pension of pensioners will also continue to increase.
New formula regarding dearness allowance
There is every possibility of increase in the salary of central employees in the month of July. But this time the rules for increasing the salary have been changed. After July, there may be a big increase in the salary of central employees, as AICPI data shows that the employees can get 5 percent dearness allowance. With this, the employees will get 39 percent DA, that is, now there can be a big increase in the salary of central employees. At the same time, the government is preparing to present a new formula. However, the date of when this formula will be introduced has not been decided by the government yet. But it has been indicated that the increase in this bass salary will be done on the basis of the formula of former Finance Minister Late Arun Jaitley.
Let us tell you that with the introduction of the new formula, employees can get big benefits, in such a situation, some employees are expected to get more benefits in salary. There is also discussion that the government can bring a new formula by abolishing the 7th Pay Commission, but the 8th Pay Commission will not be implemented in its place. Rather, the salary will be given to the central and government employees only under the new formula. Let us tell you that due to the introduction of this formula, central employees and pensioners will get a big benefit.
Also, if the dearness allowance is more than 50 percent under this, the salary and pension will automatically increase. Along with this, the allowances and salary of the employees will continue to increase from time to time. That is, the salary of government employees, pensioners will not be stopped. Let us tell you that the government can bring this formula in the form of automatic wage revision system. After its implementation, the salary of the employees will increase according to the increment linked to their performance.
The Ministry of Labor and Employment has prepared a new formula for calculation of Dearness Allowance. The ministry has changed the base year 2016 for DA calculation. Dearness Allowance is calculated by multiplying the current rate of DA of the Seventh Pay Commission by the basic pay. The current rate of percentage is 12 per cent. Under the rules of income tax in the country, dearness allowance has to be paid separately in the income tax return (ITR). That is, the amount received in the name of dearness allowance is taxed and tax has to be paid on it.
