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Home Personal Finance Dearness Allowance: Along with DA of central employees becoming zero, other allowances...

Dearness Allowance: Along with DA of central employees becoming zero, other allowances will also be affected, know details

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Employees DA Arrear: Good news for Central employees! DA arrears of Rs 30,864 will come to the account, check details

DA Merger: Central employees have been waiting for the 8th Pay Commission for a long time, in the same way DA will be merged in the basic salary. The time to merge DA in the basic salary is coming now. Dearness allowance will become zero as soon as the new pay commission is implemented. It will also affect other allowances. You will get complete information in this news.

DA Merger: Apart from salary, DA also provides great support to the employees in fighting inflation. Nevertheless, Central government employees are getting more than 50 percent DA, which will soon be included in the basic salary. The time has also come for the 8th Pay Commission to be implemented next year,

Its formation has also received approval. Therefore, there is a widespread debate among employees about the merger of DA in the salary. DA (DA hike) and other allowances will have the most changes in the new pay commission. Dearness Allowance is most likely to be zero when the new pay commission comes into force.

The recommendations of the new pay commission will be discussed soon-

The central government has formed a new pay commission in January. Now the panel members and chairman can also be quick to determine the recommendations. Before the 8th Pay Commission is implemented, the government can also create the 8th CPC Pay Matrix. Employees believe that there will also be a special discussion on including DA in the salary.

Employees believe-

Employee estimates That Dearness Allowance will exceed 50% by 2026. By 2026 it can be around 62%. According to the rules and provisions, it should have been included in the basic salary by now, but this did not happen. This can be done at the time of the new pay commission. It is sure to be included in the basic salary by making it zero. But if the government had to do this, then the decision to increase the DA of July would have to be taken in 2024 itself, with which some employees are still not fully agree. Then the DA had reached fifty percent.

DA is also being debated—

Keeping in mind the recommendations of the new pay commission, some employees and experts say that only fifty percent of DA will be merged in the basic salary. The calculation of DA (how to calculate DA) will start again from above this. But the government will take the final decision in this regard. The government has not yet given any clear response on this issue. Till now the government can keep it separate from the salary. With the implementation of the new pay commission, the focus of the employees is on merging DA.

Effect of DA becoming zero-

Various allowances will also be affected if the DA of the employees becomes zero again. DA will be zero when the new pay commission is implemented from January next year. Then the next increase will start only from July (DA July 2025), after six months. Till that time DA will remain zero. DA or salary calculation can be determined only after the next increase. In this way, the calculation further affects other allowances and other benefits.

This is how DA is increased—

Dearness Allowance (DA) is increased in view of the data of All India Consumer Price Index (AICPI). The economy, or inflation, and the financial position of the government are also studied. Also, the calculation of DA depends on the fitment factor, which depends on the AICPI data of every six months. Due to changes in AICPI data, the increase in DA is also different every time.

Minimum Salary:

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Including DA in the basic salary will increase the total income of the employees. If we look at the correct calculation of DA merger, it can add 50 percent dearness allowance to the minimum salary of Rs 18,000, or Rs 9000. That is, when DA is merged, the minimum salary of the employees will be 27,000 (Basic Salary in 8th CPC). Employees are expecting its merger because more than 50 percent of DA is merged in the basic salary on the new pay commission.

Why should DA be 0?

A new pay commission is implemented every ten years. Also, the government has said that salary and DA will be kept separate, but when the new pay scale is implemented, DA will be added to the basic salary of the employees. It cannot be merged in the basic salary. In the previous pay commissions, there was a concept of adding DA to the basic salary that it should be added to the basic salary if it is more than 50 percent. The government increases DA (DA kab bdhega) twice every year. Usually it increases by 3 or 4 percent. Thus, every ten years it increases to about 60 percent. This is the reason why now there is a discussion about its merger in the basic salary.

DA already merged

Experts say that adding the DA of employees to the basic salary will increase the burden on the government treasury, so it will not be possible. The fitment factor was 1.87 in the Sixth Pay Commission in 2006, at the time when new pay bands and new grade pay were implemented, but it was paid much later by the government because the financial burden had increased. But it took three years to give it. DA was also earlier merged in the basic salary in the 5th Pay Commission (Fifth Pay Commission), then the DA was 187 percent.

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