DA Hike Update: Big news for central employees. Recently, the Central Government has decided to increase the dearness allowance by 4 percent, the Union Cabinet has also approved this
New Delhi: The month of October is going to be good for central employees. The Union Cabinet can approve the increase in their dearness allowance. There is no formal date fixed for this.
But, speculations are being made that the Modi government may put its seal of approval on it before Dussehra. Dearness allowance for the second half of the year is to be implemented for central employees.
It will be implemented from July 1, 2023. There is a possibility of an increase of 4 percent in DA. But, meanwhile, the numbers of AICPI index for calculating dearness allowance have started coming. The latest data has come for the month of August, from which the dearness allowance to be received from January 2024 will be counted.
AICPI index declined in August
October has not started with good news for central employees. But, still only good news has come in his account. In fact, the number of the index which calculates inflation and allowances has fallen.
There has been a decline in the AICPI index numbers in the month of August compared to the previous month. However, this has not affected the dearness allowance. The index numbers for calculating dearness allowance for the year 2024 have started coming.
The index had increased very rapidly in July. But, there has been a decline in it in August. According to July figures, dearness allowance had crossed 47 percent.
How much did dearness allowance increase in August?
The AICPI-IW index numbers for the month of August have been released. There has been a decline of 0.5 points. In July the index was at 139.7 points. But, in August it has fallen to 139.2.
However, this did not affect the dearness allowance score. Dearness allowance was 47.14 percent in July, which has increased to 47.97 percent in August. Overall, if we look at this figure, it will be considered as 48 percent dearness allowance.
The numbers for September, October, November and December are yet to come. Only after this will it be decided how much dearness allowance the central employees will get from January 2024?
For central employees, the inflation index numbers between July and December will decide how much the DA will increase in the coming year. At present, the AICPI index numbers for July and August 2023 have been released.
Labor Bureau releases AICPI index data. There was a jump of 3.3 points in July. But, it has slipped 0.5 points in August. Since the July numbers came, the score of Dearness Allowance was 47.14 percent,
Which has increased to 47.97 percent in August. The final number of index and dearness allowance will be calculated after the data of December 2023. According to estimates, by January 2024 dearness allowance will cross 50 percent.
What will happen if DA is 50 percent?
According to the 7th pay commission, as soon as the dearness allowance of central employees reaches 50 percent, it will be reduced to zero. Meaning, the calculation of dearness allowance will start from 0 and 50 percent DA money will be added to the basic salary of the employees.
In the year 2016, the government changed the calculation of dearness allowance by implementing the 7th Pay Commission. In such a situation, every time dearness allowance reaches 50 percent, it will be revised.