There is good news for central employees. The moment they were waiting for is about to come. The government may soon declare their dearness allowance. The month of September is bringing happiness to the central government employees.
The month will start with new figures. The AICPI index figures for July 2024 will be released. It is nearly expected that a better increase could be seen in it.
More importantly, the dearness allowance to be implemented from July 2024 will be announced in September.
Announcement can be happened in September
The dearness allowance for central employees taking salaries under the 7th Pay Commission is sure to increase. Dearness allowance has been fixed on the AICPI index figures from January 2024 to June 2024.
However, its formal announcement has not been made yet. The central government may approve it soon.
If sources are to be believed, it can be announced in September. It should be approved in the upcoming cabinet meeting to be held on September 25.
How much it will be the increase in the dearness allowance
There is going to be hike a 3 percent increase in DA for central employees. Till now they have been getting 50 percent DA from the month of January 2024.
But, after the rise of 3 percent, it will become 53 percent. According to the AICPI index, the total dearness allowance has reached 53.36 percent by June 2024.
But, the government does not count decimals. Therefore, only 53 percent will be fixed.
How was the 6-month AICPI index
Month Index Figures Dearness Allowance
January 2024 138.9 points 50.84 percent
February 2024 139.2 points 51.44 percent
March 2024 138.9 points 51.95 percent
April 2024 139.4 points 52.43 percent
May 2024 139.9 points 52.91 percent
June 2024 141.4 points 53.36 percent
How much will be the salary increase
According to the 7th Pay Commission, the basic salary of Level-1 central employees starts from Rs 18000 and the maximum bracket is Rs 56900. Based on this, see the calculation done below.
Basic minimum salary of the central employee is Rs 18,000.
New Dearness Allowance (53%) Rs 9540/month
Dearness Allowance till now (50%) Rs 9000/month
How much the dearness allowance will be increased 9540-9000= Rs 540/month
Increase in salary for 6 months 540X6= Rs 3240
Calculation on a maximum basic salary of Rs 56900.
Basic salary of the employee is Rs 56,900
New Dearness Allowance (53%) Rs 30,157/month
Dearness Allowance till now (50%) Rs 28,450/month
How much the dearness allowance will be increased 30,157-28,450= Rs 1707/month
Increase in basic salary for 6 the months 1707X6= Rs 10,242
PM Modi’s cabinet will decide
The Expenditure Department of the Finance Ministry will be sent a proposal with the given financial burden caused by the increase in the dearness allowance.
This proposal will be placed in the cabinet. Any announcement on DA Hike will be made only after getting approval from the cabinet.
In the current system, more than one crore central employees and pensioners are getting a 50 percent dearness allowance and dearness relief under the 7th Pay Commission.
DA is given to central employees and DR is given to pensioners. Earlier in month of March 2024, dearness allowance has been increased by announced 4 percent to 50 percent. It is effective from January 1, 2024.