DA Hike: Dearness Allowance of central employees will be announced soon

7th Pay Commission news: The dearness allowance (DA) of central employees may increase soon. However, it will be announced in September. According to sources, the Labor Bureau is currently in the process of giving the final numbers. Once the numbers are finalized, they will be released.

It is expected that this time under the 7th Pay Commission ( 7th pay commission ), the dearness allowance of central employees will increase by 3 percent. After this, a decision on the increase in DA will be taken in the cabinet meetings to be held in September. The government will announce a 3% DA increase. The dearness allowance of employees will increase from 50% to 53%.

– Advertisement –

Pensioners and employees get benefits

About 52 lakh central employees and 60 lakh pensioners will benefit from this. The benefit of increased dearness allowance will be available from July 1, 2024. Dearness allowance is increased twice a year.

How much can dearness allowance increase?

According to experts, dearness allowance (DA) can increase by only 3 percent. If this happens, the dearness allowance of employees will become 53 percent. There is no possibility of it becoming zero. The DA score determined by the AICPI Index is currently at 52.91 percent. According to the current trend, even after the June numbers come, it will reach only 53.29 percent. Meaning it can be increased from 50 to 53 percent. Dearness allowance is calculated from the AICPI index. The inflation data collected from different sectors in the index shows how much the allowance of employees should increase in comparison to inflation.

How much will be the benefit after DA increase?

For this, fill your salary in the formula given below..(Basic Pay + Grade Pay) × DA % = DA Amount

In simple terms, the salary that is formed after adding grade salary to basic salary is multiplied by the rate of dearness allowance. The result is called dearness allowance or dearness allowance (DA). Now let’s understand this with an example, suppose your basic salary is Rs 18000 and grade pay is Rs 1800.

Adding both of them, the total is Rs 19800. Now if we look at the 53% increase in dearness allowance, it is Rs 10,494. Adding all of them, your total salary is Rs 30294. At the same time, in terms of 50% DA, you are getting a salary of Rs 29700. That means after the 3% increase in DA, there will be a benefit of Rs 594 every month.

Second Example

If the basic salary and grade pay of a central government employee is Rs 45700 per month, then at the rate of 50 percent, he will be getting Rs 22850 as dearness allowance. But, at 53 percent, the dearness allowance will be Rs 24221. In such a situation, this employee will get Rs 1371 more per month (Rs 24221-22850).

What is dearness allowance?

Dearness Allowance is the money given to government employees to maintain their standard of living in lieu of rising inflation. This money is given to government employees, public sector employees and pensioners. It is calculated every 6 months according to the current inflation in the country. It is calculated according to the basic salary of the employees based on the respective pay scale. Dearness Allowance may be different for employees in urban, semi-urban or rural areas.

How is dearness allowance calculated?

A formula has been given for Dearness Allowance assessment. For Central Government employees, this formula is [(Average of All India Consumer Price Index (AICPI) of last 12 months – 115.76)/115.76]×100. Now if we talk about dearness allowance of people working in PSU (Public Sector Units), then the method of its calculation is- Dearness Allowance Percentage= (Average of Consumer Price Index of last 3 months (Base Year 2016=100)-126.33)/126.33)*100

What is All India Consumer Price Index?

There are two types of inflation in India. One is retail and the other is wholesale inflation. Retail inflation rate is based on the prices paid by common customers. It is also called Consumer Price Index (CPI).

– Advertisement –