7th pay commission, DA Hike Updates: It has been confirmed that employees will get 50 percent dearness allowance from January 1, 2024. But, getting 51 percent cannot be ruled out now. Because, the December AICPI index numbers are still pending.
7th pay commission, DA Hike News: The coming 13 days are going to be tremendous for the central employees. Employees will wait for 31st January. On this day, employees will get the first good news of the year 2024. New figures of Dearness Allowance (DA) will be released. After this, how much dearness allowance the employees will get from January 2024 will be confirmed. The good news is that it is almost certain to get 50 percent dearness allowance. Because, till the last figure itself, Dearness Allowance (DA) has come close to this. The huge jump in retail (CPI) and wholesale inflation (WPI) has indicated that there may be a huge jump in the dearness allowance figures too.
Will have to wait for December AICPI
It has been confirmed that employees will get 50 percent dearness allowance from January 1, 2024. But, getting 51 percent cannot be ruled out now. Because, the December AICPI index numbers are still pending. If there is a sharp rise in the index then it can reach 50.52 points in January (da hike in jan 2024). In such a situation, dearness allowance can also be 51 percent. But, if we look at the current trends, 50 percent has been confirmed. It is almost certain that it will increase by 4 percent. The picture will become clear only after waiting till January 31.
There was a surge in November also
The data to calculate dearness allowance of central employees has arrived. AICPI Index numbers for November 2023 have been released. An increase of 0.7 points has been seen in the index. The total dearness allowance score has increased by 0.60 percent to 49.68 percent. This number confirms that in the coming days, central employees will get 50 percent dearness allowance. But, experts are not denying that there is still a surge left. Retail and wholesale inflation are at their highest levels. If AICPI also shows a sharp rise, then an increase of 5 percent cannot be ruled out.
What changed in AICPI Index?
DA will be 0 after 50 percent
Central employees will get 50 percent DA from January 2024. But, after this the dearness allowance will be reduced to zero. After this the calculation of dearness allowance will start from 0. 50 percent DA will be added to the basic salary of the employees. Suppose if the minimum basic salary of an employee according to his pay band is Rs 18000, then 50 percent of Rs 9000 will be added to his salary.
When is dearness allowance reduced to 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.
