DA Hike: There is tremendous news for central employees. Soon they are going to be rich. Actually, there is going to be a big jump in his salary. His salary is going to increase by Rs 9000/month in a jiffy. Actually, this is going to happen under a rule made by the central government.
DA Hike: There is tremendous news for central employees. Soon they are going to be rich. Actually, there is going to be a big jump in his salary. His salary is going to increase by Rs 9000/month in a jiffy. Actually, this is going to happen under a rule made by the central government. As soon as this rule made in the year 2016 comes into force, there will be a tremendous jump in the salary of central employees. This will happen because of the rise in DA Hike. Let’s know what is the matter?
Rules have been made regarding dearness allowance
Actually, the dearness allowance of central employees is increased every six months. At present, central employees are getting dearness allowance at the rate of 42 per cent. Now the next dearness allowance is to increase in July 2023. It is estimated that there will be an increase of 4 percent in this too. In this situation the dearness allowance will increase to 46 per cent. After this, just have to wait for the dearness allowance to increase once more. Why? Now here a rule made by the central government applies. In the year 2016, the government had made a rule that as soon as the dearness allowance reaches 50 per cent, it will be reduced to zero.
Basic salary increase formula
How will there be a tremendous increase in the basic salary? For this, let’s go in a little flashback. When the government implemented the 7th Pay Commission in the year 2016, the dearness allowance was reduced to zero. A new base year has been fixed for the calculation. Due to zero dearness allowance, the employees got the benefit that the previous dearness allowance was added to their basic salary. Now something similar is going to happen once again. There is a plan to increase the salary once again by merging the dearness allowance with the basic salary and then the dearness allowance will become zero.
Will dearness allowance be zero (0)?
Now the question comes why would this happen? Actually, in the memorandum of the year 2016, it has been told that as soon as the Dearness Allowance (DA) will be 50% i.e. 50% of the basic salary, then it will be reduced to zero. Means after being zero, the dearness allowance which is being received now at 42 percent, will start back from 1 percent, 2 percent. This will happen because, as soon as 50 percent dearness allowance (DA Hike) is reached, it will be merged with the basic salary. With this, the employees will not have to wait long for their salary revision. Earlier the dearness allowance used to exceed 100 per cent. This was the formula in the sixth pay.
Salary of central employees will increase by Rs 9000
At present, there is a basic salary of Rs 18000 on pay-bed level-1. This is the minimum basic. If you see its calculation, then in total, you get Rs 7560 as dearness allowance. But, if you see the same calculation on 50% dearness allowance, then you will get 9000 rupees. Now here comes the catch. As soon as there is 50 percent DA, it will be reduced to zero and added to the basic salary. Means the salary of Rs 18000 will increase by Rs 9000 to reach Rs 27000. After this, the dearness allowance will be calculated at Rs.27,000. If after 0, if DA increases by 3 percent, then 810 rupees a month will increase in his salary.
When will central employees get gifts
At present, the dearness allowance of central government employees is 42 per cent. Now the next revision is to be held in July 2023, in which there may be an increase of 4 percent. This means that after July, the dearness allowance will increase at the rate of 46 percent. In such a situation, the revision of dearness allowance for January 2024 will have to be monitored. If it increases by 4 percent, then the dearness allowance will reach 50 percent. If it increases by 3 percent, it will be 49 percent. In case of 50%, the dearness allowance will become zero from January 2024 itself. Means from July 2024, dearness allowance will be calculated only on the increased basic salary. If 49 per cent remains, then one has to wait till July 2024.
Why is dearness allowance made zero?
Whenever the new pay scale (Central pay commission) is implemented, the DA received by the employees is added to the basic salary. Experts say that as a rule, 100% DA received by the employees should be added to the basic salary, but this is not possible. Financial condition 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 received till December in the fifth pay scale. The entire DA was merged with the basic pay. Hence the coefficient of 6th pay scale was 1.87. Then new pay band and new grade pay were also created. But, it took 3 years to deliver it.
