The central government is going to increase the dearness allowance once again. According to the CPI-IW data, it is being said that the government can increase the dearness allowance by 3 percent.
Central government employees and pensioners are eagerly waiting for the increase in dearness allowance (DA) and dearness relief (DR). Meanwhile, news is coming that the central government may soon announce an increase in dearness allowance and dearness relief. Generally, the central government revises the DA twice a year in January and July, which is officially announced later. Let us know how much will the salary of the employees increase if the government increases the DA?
How much will the dearness allowance increase?
The central government is going to increase the dearness allowance once again. According to the CPI-IW data, it is being said that the government can increase the dearness allowance by 3 percent. This increase will be made for employees and pensioners under the Seventh Pay Commission, which will be effective from July 2024.
How much will the salary of employees increase?
If the government increases the dearness allowance for employees, then the upcoming DA increase will be added to the take home salary. If someone gets a basic salary of Rs 55,200, then their dearness allowance at 50% is Rs 27,600. On the other hand, if DA becomes 53 percent, then their dearness allowance will increase to Rs 29,256. That is, the salary of the employees will increase by Rs 29,256 – Rs 27,600 = Rs 1,656.
1 crore employees and pensioners will get benefit
Central government employees get 50% DA of basic salary, while pensioners get 50% DR of basic pension. The last time DA was increased was on March 7, 2024. This increase is effective from January 1, 2024. Last year, the DA increase effective from July 1, 2023 was announced on October 18, 2023. Given the government’s deadline for DA revision, the next hike is expected to be announced soon. This hike will benefit one crore employees and pensioners.
How is dearness allowance calculated?
How the dearness allowance will increase depends on the CPI-IW data. This figure is released every month by the Labor Ministry. On the basis of this figure, it is decided how much the dearness allowance of government employees should increase.
Formula- 7th Pay Commission DA% = [{12 months AICPI-IW data (base year 2001=100) – 261.42}/261.42×100]