The pay will rise by $9,000 as a result of the 7th Pay Commission's 50% DA increase; be informed of the most recent developments

 The pay will rise by $9,000 as a result of the 7th Pay Commission's 50% DA increase; be informed of the most recent developments

Finally, the seventh pay commission boosted central workers' dearness allowance by 4%. Salary increases will start in November. But did the joy last only through the holiday season? No, the central personnel still have more happy news to hear. In the days to come, they will get even more beautiful presents.

7th pay commission increase: Excellent news for central personnel. Finally, central workers' dearness allowance rose by 4%. The cabinet gave its approval on Wednesday, and the workers' dearness allowance increased to 46%. But did the joy last only through the holiday season? No, the central personnel still have more happy news to hear. In the days to come, they will get even more beautiful presents.

must wait till the next allowance

Starting on July 1, 2023, employees will get an allowance. But now, the topic of the next allowance is being discussed. This is due to two factors. First, since the AICPI index statistics for the previous two months have recently been released. This has witnessed a significant rise. This increase is not the last one, however. We will have to wait till 2024 for this. Because the amount by which the DA would grow in the next year will depend on the inflation index data from July to December. However, July and August's data are now available. This has also witnessed a large growth.

What is the second important factor?

The 50 percent DA is the second main topic of debate when it comes to dearness allowance for 2024. Because it can only become zero when this occurs, according to a requirement. Additionally, Lok Sabha elections will take place in 2019. As a result, the staff might get a sizable present. There is a regulation that states it should be merged into basic if the dearness allowance is 50%. The compensation of the workers would significantly rise if this occurs, by at least Rs 9000.

How many is the AICPI Index?

AICPI index statistics have been made public by the Labor Bureau. For the last two months (July and August), its numbers have increased. On October 31st, the September number will be released. The index has so far risen to 139.2 points. Accordingly, the overall DA has been obtained at 47.97%. According to data through June, the dearness allowance was raised by 4%. The overall dearness allowance score was 46.24 percent at the time. The amount of the rise in the dearness allowance beginning in January 2024 will now be determined by the numbers of September, October, November, and December. Experts predict that the dearness allowance will surpass 50% by January 2024.

What would happen if DA was 50%?

According to the 7th Pay Commission, central workers' dearness allowance would be lowered to zero whenever it reaches a threshold of fifty percent. As a result, the computation of the dearness allowance will begin at zero, and any amounts received in accordance with the 50 percent rule will be added to the basic wage. The government eliminated it by putting the 7th Pay Commission into effect in 2016. After then, 50% of it will be changed once more to zero.

Pay will rise by Rs. 9000.

When the dearness allowance reaches 50%, it is lowered to 0% and the amount up to 50% is added to the basic income, which is the minimum wage. In the event that an employee's base pay is Rs. 18000, he will get Rs. 9000 in DA at 50%. But if the dearness allowance is 50% and the basic income is increased by adding it, the basic salary would increase by Rs 9, 000.

Why is there no tolerance for dearness?

The DA that workers earn is increased by the basic wage whenever a new pay scale is adopted. According to experts, workers should generally have their base income increased by the whole amount of their DA, although this is not always practicable. Issues with money get in the way. But this was carried out in 2016. Prior to that, until December of the fifth pay scale in 2006, when the sixth pay scale was introduced, DA at that time was being paid at a rate of 187%. The base salary was combined with the total DA. As a result, the sixth pay scale's coefficient was 1.87. Then, new grade pay and pay bands were also developed. However, delivery took three years.