7th Pay Commission news: Dearness allowance of employees will not be zero. The calculation of dearness allowance will continue. Actually, there is no rule about it.
7th Pay Commission news: There is no good news for central employees. The data of dearness allowance has been updated. But, this has given a double shock. Dearness allowance (DA Hike) is being given 50 percent from January 2024. After this, there was a discussion of making it zero. However, this discussion was because this was done during the 7th pay commission. But, there is still confusion on whether it will be implemented. There is no official statement on this from the government.
Will it be zero or not?
Let us tell you, dearness allowance of employees will not be zero. The calculation of dearness allowance will continue. Actually, there is no rule about it. Last time this was done when the base year was changed. Now there is no need to change the base year at present. Therefore, dearness allowance for central employees will increase at the rate of 50 percent.
This time dearness allowance will increase less
The numbers of AICPI-IW index released between January to June 2024 will decide how much dearness allowance the employees will get from July 2024. So far the numbers of January, February, March, April have come. The number of May will be released at the end of June. Now this dearness allowance will increase in July. In January, the index number was at 138.9 points, due to which dearness allowance increased to 50.84 percent. After this, the index was at 139.2 points in February, 138.9 points in March and 139.4 points in April. On this pattern, dearness allowance has reached 51.44 percent, 51.95 percent and 52.43 percent by April.
| Month | CPI(IW)BY2001=100 | DA% Monthly Increase |
| Jan 2024 | 138.9 | 50.84 |
| Feb 2024 | 139.2 | 51.44 |
| Mar 2024 | 138.9 | 51.95 |
| Apr 2024 | 139.4 | 52.43 |
| May 2024 | ||
| Jun 2024 |
How much can dearness allowance increase?
According to experts, the next increase in dearness allowance (DA) can be 3 percent. It can be given at the rate of 53 percent. There is no possibility of it being zero. The score of DA, which is determined by the AICPI Index, is currently at 52.43 percent. According to the current trend, dearness allowance will reach only 53 percent. The numbers of May and June are yet to come. However, even after a very good jump in the index, dearness allowance will increase only by 3 percent. Meaning it will increase from 50 to 53 percent. Dearness allowance is calculated from the AICPI index. The inflation figures collected from different sectors in the index show how much the allowance of employees should increase in comparison to inflation.
When will it be announced?
The announcement of dearness allowance for central employees is made by September or October. Actually, the June figure will come by the end of July. After this it will be decided how much the increase is to be. After this the file will reach the Finance Ministry from the Labor Bureau and then the Cabinet will approve it. But, by September or October, the dearness allowance will be approved. It will be implemented only from July 2024. The payment for the intervening months will be made as arrears.
There will be a huge jump in dearness allowance
Under the 7th Pay Commission, the AICPI numbers from January to June 2024 will decide the dearness allowance for central employees. Dearness allowance has reached 52.43 percent. The numbers for 2 months are yet to come. Experts believe that this time an increase of 3 percent is certain. Now whether the dearness allowance starts from zero or the counting continues beyond 50 percent. There can be an increase of 3 percent. If this happens, the dearness allowance can reach 53 percent.
