7th Pay Commission DA Hike at 50% – Get Ready for ₹9000 Salary Jump
New Delhi, Feb 06 (WD):
In a recent development, central employees are poised to receive a significant boost in their salary structure with the latest hike in dearness allowance (DA). According to reports from wattandaily.com, not only has the dearness allowance for central employees been augmented, but their salaries are set to experience a direct increase. As per reports, upon the approval of the dearness allowance hike, employees can expect a substantial leap in their monthly earnings, with an increase of up to Rs 9000.
The surge in dearness allowance comes as part of the annual adjustment based on the All India Consumer Price Index (AICPI). The new adjustment, slated to take effect from January, will see central employees receiving a 50 percent dearness allowance. This development, however, is pending the official announcement by the Central Government. Alongside the increase in dearness allowance, there are indications of a direct augmentation in the basic salary of employees. This adjustment stems from a rule instituted by the Central Government back in 2016, which mandates a revision in salary structure upon reaching a certain threshold of dearness allowance.
Under the current framework, dearness allowance for central employees undergoes revisions every six months. With the impending adjustment, the dearness allowance is set to rise from the existing 46 percent to 50 percent starting January 2024. However, in accordance with government regulations, once the dearness allowance hits the 50 percent mark, it will be reset to zero. This reset is part of the rule implemented in 2016, aimed at streamlining salary revisions and ensuring timely adjustments.
The mechanism for increasing the basic salary involves a recalibration process, wherein the dearness allowance is merged into the basic salary structure. This methodology, akin to the implementation of the 7th Pay Commission in 2016, facilitates a significant increase in the basic salary component. By incorporating the dearness allowance into the basic salary, employees stand to benefit from a substantial rise in their overall remuneration.
As per the calculations provided by wattandaily.com, the current basic salary at pay-level-1 stands at Rs 18,000, with an accompanying dearness allowance of Rs 7,560. However, with the anticipated hike in dearness allowance to 50 percent, the basic salary is projected to increase by Rs 9,000, resulting in a revised salary of Rs 27,000. This recalibration of salaries not only enhances the financial well-being of employees but also ensures a more equitable distribution of income.
Looking ahead, the Union Cabinet is expected to approve the DA hike in March, paving the way for the implementation of revised salary structures for central employees. With these developments, the prospect of the formation of the 8th Pay Commission looms on the horizon, signaling a paradigm shift in the remuneration framework for government employees.
In summary, the impending hike in dearness allowance coupled with the recalibration of basic salaries reflects a concerted effort by the government to bolster the financial security of central employees. As reports from wattandaily.com suggest, these measures are poised to usher in a new era of economic stability and prosperity for government workers across the country.
