The data to calculate dearness allowance of central employees has arrived. AICPI Index numbers for November 2023 have been released. An increase of 0.7 points has been seen in the index. Due to this, the total dearness allowance score has increased by 0.60 percent to 49.68 percent. Now it is confirmed that in the coming days, central employees will get 50 percent dearness allowance. It means clearly that it is going to increase by 4 percent.

What changed in AICPI Index?

Central employees will get 50 percent DA from January 2024. But, after this the dearness allowance will be reduced to zero. After this the calculation of dearness allowance will start from 0. 50 percent DA will be added to the basic salary of the employees. Suppose if the minimum basic salary of an employee according to his pay band is Rs 18000, then 50 percent of Rs 9000 will be added to his salary.

When is dearness allowance 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.

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It has increased by 0.7 points as compared to June. This figure was 129.2 in June, which has increased to 129.9 in July. Due to this increase, the way has been cleared for the increase in Dearness Allowance of the employees in January next year. The announcement will be made on September 28 , based on the data of the AICPI index from July to December, the dearness allowance will increase in January next year.

Based on the data from January to June, the announcement of Dearness Allowance for July is going to be done soon. Sources claim that the Dearness Allowance for July will be announced by the government on the third Navratri i.e. on September 28. This time dearness allowance is expected to increase by 4 percent.

Let us tell you that on the basis of 7th Pay Commission, DA of central employees is increased twice a year in January and July . Its basis is the six-month AICPI index. This time after increasing dearness allowance in July, the employees will get salary for the month of September along with two months arrears.

How much DA will increase

This time dearness allowance is expected to increase by 4 percent. After this it will increase from 34 to 38 percent. At present, 34 percent dearness allowance is being given to the central employees by the government. With DA being 38 percent, there will be a good jump in salary.

The figures are released by the Labor Ministry, the dearness allowance for central employees is estimated on the basis of the AICPI index. The figures of All India Consumer Price Index (AICPI) are released by the Labor Ministry. The index has been prepared for 88 centers and for the entire country. AICPI is released on the last working day of every month.

The post 7th Pay commission: Good news for central employees, clear the way for increasing dearness allowance next year first appeared on Rightsofemployees.com.