7th Pay Commission: Dearness Allowance reached 50% at the beginning of the year 2024. Many other allowances of central government employees have been increased in the last few months. The basic salary of central government employees and pensioners increased during the next increase in dearness allowance or dearness relief.
7th Pay Commission: Dearness Allowance reached 50% at the beginning of the year 2024. Many other allowances of central government employees have been increased in the last few months. Now there are media reports that the basic salary of central government employees and pensioners has increased during the next increase in dearness allowance or dearness relief. Usually DA and DR of central government employees and pensioners increase from July. With DA and DR touching the 50% mark, there is speculation that DA and DR will automatically be added to the basic salary. This will increase the basic salary of lakhs of central government employees and pensioners of the country. Are central government employees and pensioners expecting an increase in basic salary from July 2024? Will this change happen in such a situation? This is the question being asked by lakhs of central government employees.
Will DA and DR be added to basic salary?
Speculation started when the issue of adding DA to basic salary came to the fore after crossing the 50% limit. The Fifth Pay Commission report (para 105.11) recommended merging DA with basic salary and terming such merger as dearness pay. Following this recommendation, in 2004, 50% of DA of basic salary was merged to form dearness pay for the purpose of calculation of allowances and retirement benefits. But later it was changed. However, this change will not happen automatically. The government will have to take a decision on this.
Dearness allowance is 50 percent now
Central Government Employees are getting dearness allowance at the rate of 50 percent. The government had increased the dearness allowance from 46 percent to 50 percent in March. It was implemented from January 1, 2024. However, when DA increased to 50 percent, it was believed that it would now be added to the basic salary and DA would be calculated separately. However, this will not happen. Even if DA is 50 percent, it will not be added to the basic salary. Even after the DA increases next time, it will be calculated on the basis of basic salary.
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