The Kalamkar

7th Pay Commission DA Hike: A big news is coming out for the employees

increase in the dearness allowance of the employees, it has increased from 46 percent to 50 percent. According to the rule, the dearness allowance starts from zero after becoming 50 percent. But till now no change has been made in the calculation of DA, in such a situation the question arises whether now in July 2024, DA will increase above 50 percent or will be zero. Let us know in detail in the news below- 

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There is good news for central employees. The calculation of their dearness allowance (DA Hike Calculation) will change from July 2024. But, it is important to understand why this is happening and how this good news is. Central government employees are currently getting 50 percent dearness allowance (DA). 

This is applicable from January 2024. The next hike in dearness allowance will be applicable from July 2024. However, it may take September to get approval. But, it will be implemented from July only. Now let us understand what will happen by changing the calculation.

Calculation will start from 0 

The numbers of the AICPI index, which decides the score of Dearness Allowance (DA), are to be released between January and June 2024. Out of these, only the data of January 2024 has come out so far. 

These numbers will decide how much the Dearness Allowance of central employees will increase. The calculation of dearness allowance, which is zero (0), will change when the dearness allowance is 50 percent. 

This calculation will start from 0 and the increase will be counted beyond 3-4 percent. If the sources of Labor Bureau are to be believed, the calculation is sure to change. However, for the answers to all the questions, one will have to wait till 31 July 2024.

Dearness allowance is decided by AICPI numbers

According to the 7th Pay Commission, dearness allowance for central government employees is determined by the AICPI index i.e. CPI(IW). The Labor Bureau releases it on the last working day of every month. However, this figure is delayed by one month. For example, the January figure comes at the end of February. 

The index numbers decide how much the dearness allowance will increase. A formula has been given for determining dearness allowance. For central government employees, this formula is [(Average of All India Consumer Price Index (AICPI) of the last 12 months - 115.76)/115.76]×100. In this, the bureau collects data of many items. On the basis of this, the index number is decided. 

Labor Bureau did not release the data for 2 months

For the calculation of CPI for industrial workers, AICPI numbers will be released on the last working day of every month. The event calendar for this has already been released. According to this, January's CPI number was released on 29 February. February's CPI number was to be released on 28 March. But, it was not released. 

March's number was also not released on 30 April. It is being told that the Labor Bureau does not have February's numbers. Therefore, further calculations have not been done. Also, the intention is to collect all the data before July and then finally release it. June's number will be released on 31 July. This number will decide how much the dearness allowance should increase in comparison to the inflation increased in six months.

Delay in releasing February numbers

If we look at the current situation, the CPI(IW) number till January is 138.9 points. Due to this, dearness allowance has become 50.84 percent. It will be counted as 51 percent. According to estimates, this figure can reach 51.42 in February. Experts are estimating that the next hike in dearness allowance will also be of 4 percent. But, it is too early to say whether it will be given 4 percent or 54 percent.

How will employees get the good news?

Experts clearly believe that it is not clear now whether the dearness allowance will be made zero or not. When the final number comes in July, only then will it be clear whether it will be made zero or the calculation will continue beyond 50. 

It will completely depend on the government how and from where the dearness allowance will be calculated. But, in the meantime, the good news we were talking about is that as soon as it becomes zero, 50 percent of the dearness allowance money will be automatically merged in the basic. 

Minimum salary will increase by Rs 9000

If the calculation of dearness allowance starts from 0 from July, then the salary of central employees will increase by Rs 9000. This increase will be calculated on the lowest salary. If the basic salary of a central employee is Rs 18000, then his salary will increase to Rs 27000. 

Similarly, if the salary of an employee is Rs 25000, then his salary will increase by Rs 12500. This will happen because, when dearness allowance is renewed, it will be merged with the basic salary. However, the dearness allowance was last made zero on 1 January 2016. At that time, the recommendations of the 7th Pay Commission were implemented.