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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