Before Diwali, the central government announced a 3 per cent increase in the dearness allowance (DA) for central employees, raising it from 50% to 53%. This increase brought significant benefits to employees. However, a new question has arisen: will the dearness allowance now be added to the basic salary? If this happens, it could lead to a major change in the salary structure of employees. This issue has been discussed before, and the debate has resurfaced once again. Let’s take a look at the full calculation of dearness allowance (DA) and its potential impact on salaries.
Announcement of increase in dearness allowance
On October 16, the government increased the dearness allowance (DA) of central employees by 3%, due to which their DA has now increased from 50% to 53%. This increase is good news for the employees, especially when inflation is increasing day by day. After this decision, the salary of the employees will also increase, which will give them great relief from inflation.
At the same time, on the question of adding dearness allowance to the basic salary, Union Minister Ashwini Vaishnav recently said that discussions are going on about it. However, no decision has been taken on it yet. If this happens, there will be permanent changes in the salary of government employees. Apart from this, their allowances and pension will also be affected.
There was a change in the 6th Pay Commission
When the dearness allowance reached above 50% under the 6th Pay Commission, this was also considered. In 2004, when the dearness allowance reached close to 50%, it was merged with the basic salary, but later the rules were changed and it was separated again. If this is done in the 7th Pay Commission as well, then there will be permanent changes in the salary structure of the employees and they will get more salary according to the dearness allowance. Apart from this, other benefits like allowances, bonuses and pensions will also be affected by this, because all these things are based on the basic salary.