July is going to be more beneficial for the Central Government . employees, undoubtedly. The computation of the dearness allowance (DA) for central employees will be revised in the month of July 2024.
At present, the DA currently being bestowed on the central employees is computed at 50%. However, starting in July 2024, it will start from zero.
Dearness allowance is to be included in the basic salary.
The structure of allowances will change in July, and the 50% DA that employees currently enjoy will be applied to their base pay. It will also imply a re-estimation and thus cause a much higher rise in salaries.
Salary Hike Details
File attribute restructuring has the potential to increase the wages of employees by at least 9,000 INR. Since the DA is to be recalculated from a base of zero, salaries will increase as a consequence of the process. For instance, the employees who were paid a basic amount of 10,000 INR will have their pay raised to 37,000 INR by adding the 50% DA to the basic pay.
Monthly DA Calculation
The dearness allowance is calculated on the basis of the All India Consumer Price Index for industrial workers published by the Labour Bureau on the last working day of the subsequent month.
For the current controlling DA, which is as of January 2024, the figure is 50.8%. As per government policies, if the DA is 50%, it is included in the employees’ wages, and the DA percent is again adjusted to nil.
Awaiting Final Figures
There are still no published DA figures for February and March 2024 from the government. The last numbers are planned to be released in July. For the next month, which is after arriving at the July figures, the DA calculation begins at zero, and the salary of the employees will be boosted considerably. However, the final administrative decision will be made by the government.
Key Points to Remember:
- DA is currently at 50.8%.
- The DA will be brought to zero in July 2024.
- An expected rise in salary could be seen among the Central Government employees.
- Decisions are subject to the approval of the government.
