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DA Hike latest news Today: In January 2024, dearness allowance of central employees will be increased to 50 percent. Dearness Allowance (DA Hike) is increased twice every year for central employees. But, how much this increase will be depends on the course of inflation.
DA Hike latest news Today: The wait for central employees is about to end. A new update will come out for employees on 31 January 2024. The mathematics of dearness allowance of central employees is going to change in the year 2024. Actually, the complete data of dearness allowance applicable from January 1 will be released on January 31, 2024. This data will be from AICPI. It is only on the basis of this index that it is known how much the dearness allowance will increase for central employees. This time too, dearness allowance is certain to increase at the rate of 4 percent. AICPI index numbers have arrived till November. The December number will be released on January 31, in which a new update will come. There is full hope that dearness allowance will increase to 50 percent.
In January 2024, dearness allowance of central employees will be increased to 50 percent. Dearness Allowance (DA Hike) is increased twice every year for central employees. But, how much this increase will be depends on the course of inflation. There is sure to be an increase in the allowances given to central employees in proportion to inflation. Well, dearness allowance is bringing good news for the employees in the coming times. His dearness allowance is going to be 50 percent. Let us know how…
Dearness allowance will increase by 4 percent
Last time also the Dearness Allowance (DA Hike) of central employees has increased by 4 percent. This increase came into effect from July 2023. Now the next dearness allowance is to be announced from January 2024. It is expected that the next increase will also be 4 percent. According to experts, the way the inflation situation is and the AICPI-IW figures have come, it is clear that in the coming days the dearness allowance will also increase by 4 percent. This means that compared to 46 percent dearness allowance at present, 46% dearness allowance can be received from January 2024.
Dearness allowance will become zero i.e. 0
There is a rule for dearness allowance. When the government implemented the 7th Pay Commission in 2016, dearness allowance was reduced to zero. According to the rules, as soon as the dearness allowance reaches 50 percent, it will be reduced to zero and the money that the employees are getting as allowance according to 50 percent will be added to the basic salary i.e. minimum salary. Suppose the basic salary of an employee is Rs 18000, then he will get 50 percent DA of Rs 9000. But, once the DA is 50 percent, it will be added to the basic salary and the dearness allowance will again be reduced to zero. This means the basic salary will be revised to Rs 27,000. However, for this the government may have to make changes in the fitment also.
Why will dearness allowance be 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.
Financial burden increases on government
At the time of the Sixth Pay Commission in 2006, the new pay scale was implemented from January 1, 2006, but its notification was issued on March 24, 2009. Due to this delay, DA Arrear of 39 to 42 months was paid to the government in 3 installments in 3 financial years 2008-09, 2009-10 and 2010-11. A new pay scale was also created. In the fifth pay scale of 8000-13500, 186 percent DA on 8000 was Rs 14500. Therefore, after adding both, the total salary became Rs 22 thousand 880. In the sixth pay scale, its equivalent pay scale was fixed at Rs 15600 -39100 plus 5400 grade. In the sixth pay scale, this salary was Rs 15600-5400 plus Rs 21000 and after adding 16 percent DA Rs 2226 on January 1, 2009, the total salary was fixed at Rs 23 thousand 226. The recommendations of the Fourth Pay Commission were implemented in 1986, the Fifth in 1996, and the Sixth in 2006. The recommendations of the Seventh Commission came into effect in January 2016.
If DA changes then HRA will increase.
The next revision in House Rent Allowance will also be 3%. The maximum HRA rate will increase from the current rate of 27 percent to 30 percent. But, this will happen only when the dearness allowance revise crosses 50%. According to the memorandum of the Finance Department, once DA crosses 50%, HRA will become 30%, 20% and 10%. The categories of House Rent Allowance (HRA) are according to X, Y and Z class cities. Central employees who fall in X category are getting 27 percent HRA, which will become 30% if DA is 50%. At the same time, for Y Class people it will increase from 18 percent to 20 percent. For Z Class people, it will increase from 9 percent to 10 percent.
