7th Pay Commission DA Hike: Will the new pay commission be adopted, or will workers' and pensioners' DA reach 50% in 2024?

 7th Pay Commission DA Hike: Will the new pay commission be adopted, or will workers' and pensioners' DA reach 50% in 2024?

DA Hike: New rates for 2023 have been released, and the following DA will now be amended in 2024 based on data from the AICPI index for the months of July through December of 2023.

7th Pay Commission DA Hike 2023: The Modi administration at the Center gifted the central employee pensioners three months' arrears, a Diwali bonus, and a dearness allowance prior to Diwali. For July 2023, DA will grow by 4%; thereafter, DA will rise from 42% to 46%. The next revision to the dearness allowance is scheduled for 2024; however, the precise amount of the increase will be determined by the half-yearly data of the AICPI index. However, according on the AICPI index data available so far, a 50% rise in DA is anticipated in the next year. Able to cross.

What will be the next rise in the dearness allowance in 2024?

Actually, based on half-yearly data from the AICPI index, the Central Government updates the DA/DR rates of central workers and pensioners twice a year, in January and July. The next DA will be reviewed in 2024 and will rely on the AICPI index data for July through December 2023. New rates for 2023 have been released. The AICPI index has reached 139.2 points and the DA score is 47.98 percent as per the announcement of the July and August statistics. September may see this percentage surpass 48.50 percent. The numbers that will determine the amount of the DA rise in January 2024 for September, October, November, and December have not yet been revealed. Nonetheless, only the Central Government will make the ultimate choice.

What happens if the DA hits 50%?

In the event that the dearness allowance (DA) rates increase from 4% to 5% starting in January 2024, the employees' salaries will be adjusted to account for the rate of inflation, as the Central Government did when it formed the Seventh Pay Commission. It was agreed to revise the allowances regulations so that DA would start at zero and become zero when it reaches fifty percent. Fifty percent of the DA will be added to the current basic wage. Similar to this, there will be increases of up to 25% in many other sorts of allowances. An rise is anticipated.

There are rumors that the Central Government may need to form a new pay commission (8th pay commission) if the District Attribution (DA) hits 50%. The 7th Pay Commission was established in 2013, and its recommendations were put into effect in 2016. Either this has to be done, or new regulations pertaining to pay increases need to be introduced. Since a new pay commission has been established every ten years up until now, the government may need to take this into consideration in 2024. While this has not been formally verified, it may be projected given the existing situation. Was once.

How is the allowance for dearness determined?

DA is computed using the following formula for Central Government employees: {Average All India Consumer Price Index of the preceding 12 months (Base Year: 2001=100-115.76/115.76}X100). The equation used is {Average of 3 months All India Consumer Price Index (Base Year-2001=100-126.33/126.33}X100} for personnel in the Central Public Sector.

Stated differently, the computation of dearness allowance involves multiplying the current rate of DA by the base wage. For instance, if your DA is 46% and your base pay is Rs. 18,000, your DA formula is (45 x 29200) / 100. In a similar manner, pensioners' dearness alleviation is also computed.