7th Pay Commission: DA at 53% to be merged into basic pay before January revision for central govt employees?

7th Pay Commission: The Centre recently hiked by 3% the dearness allowance (DA) for serving central government employees and dearness relief (DR) for pensioners for the July-December 2024 period.

With this DA/DR revision, the allowance has hit the 53% of the basic pay level, triggering speculation that there might be a merger of DA with basic salary. The basis of this speculation is one of the instances in 2004 when DA was merged with basic pay after hitting the 50% mark.

However, the government has maintained its stance that DA will not merge with basic pay despite it breaching the 50% level. A senior government official recently said that during the 5th Pay Commission, dearness allowance got merged into the basic as the consumer price index rose by 50% over the base index used by the previous pay commission.

What was 6th Pay Commission stance on DA merger with basic pay?

However, later the 6th Pay Commission categorically stated that DA should not be merged into the basic pay even when it breaches the 50% of basic salary mark.

Also read: 7th Pay Commission: Dearness allowance hike announcement for govt employees soon | DA to be raised by THIS much

When will next DA hike be announced?

The next DA hike will be announced in March before Holi festival. However, the hike will be effective from January 2024. The Centre revises DA and DR for employees and pensioners twice a year in March and September/October every year. The revision gets effective from January and July and central government employees usually get April and October salaries with arrears of two to three months.

How is DA calculated for central government employees?

DA% = [(Average of AICPI (Base Year 2001 = 100) for the last 12 months – 115.76)/115.76] x 100

DA Calculation for Public Sector Employees:

DA% = [(Average of AICPI (Base Year 2001 = 100) for the last 3 months – 126.33)/126.33] x 100

Here, AICPI means the All-India Consumer Price Index.

 » Read More

Related Articles

Bizongo ramps up logistics arm to boost platform play

As it eyes the unicorn status, business-to-business (B2B) raw materials marketplace Bizongo, which is currently valued at $980 million, is enhancing its logistics vertical to boost its platform capabilities. The logistics arm, launched in November 2023, currently works on an asset-light model with partnerships with vendors, but the startup intends to start owning warehouses in

Textile units under GST lens for mis-classifying services

Central Goods and Services Tax (CGST) officials in the recent months have investigated over two dozen textile manufacturing companies across the country for mis-classifying textile processing activities and subsequently paying lesser tax. According to official sources, the CGST department has observed that several textile manufactures are recording activities which involve ‘changing the nature of cloth’

AI being used for collusion, says CCI chairperson

Artificial intelligence (AI) is being used for “collusion” by sections of Indian industry, Ravneet Kaur, chairperson of Competition Commission of India (CCI) said on Sunday, adding that the regulator would equip itself to deal with it. “Companies are using AI to coordinate prices without explicit agreements, and are engaging in algorithmic discrimination under the garb

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Stay Connected

0FansLike
0FollowersFollow
0SubscribersSubscribe
- Advertisement -

Latest Articles

Bizongo ramps up logistics arm to boost platform play

As it eyes the unicorn status, business-to-business (B2B) raw materials marketplace Bizongo, which is currently valued at $980 million, is enhancing its logistics vertical to boost its platform capabilities. The logistics arm, launched in November 2023, currently works on an asset-light model with partnerships with vendors, but the startup intends to start owning warehouses in

Textile units under GST lens for mis-classifying services

Central Goods and Services Tax (CGST) officials in the recent months have investigated over two dozen textile manufacturing companies across the country for mis-classifying textile processing activities and subsequently paying lesser tax. According to official sources, the CGST department has observed that several textile manufactures are recording activities which involve ‘changing the nature of cloth’

AI being used for collusion, says CCI chairperson

Artificial intelligence (AI) is being used for “collusion” by sections of Indian industry, Ravneet Kaur, chairperson of Competition Commission of India (CCI) said on Sunday, adding that the regulator would equip itself to deal with it. “Companies are using AI to coordinate prices without explicit agreements, and are engaging in algorithmic discrimination under the garb

How Women Can Build Wealth Through Real Estate: Key investment tips

Owning a home is one of the most significant steps toward financial security, both for individuals and families. While men have traditionally taken the lead in property purchases in India, the trend is gradually changing, with more women actively investing in real estate. Recognizing this shift, both state governments and financial institutions have introduced various

Ghaziabad Namo Bharat Station to get tech-enabled co-working spaces

The National Capital Region Transport Corporation (NCRTC) is set to launch a co-working space, named MetroDesk, at the Ghaziabad Namo Bharat Station soon. This innovative initiative aims to turn urban transit areas into dynamic business hubs, introducing a pioneering coworking model within the Namo Bharat network. MetroDesk is tailored for professionals, entrepreneurs, and small businesses