Central government employees have been given some good new on their dearness allowance (DA). This means that the government has found it prudent to up DA as employees feel the pinch because of inflation. Now let us analyse how much this hike would affect their salaries.
Amendment in the Revised DA for Different Pay Commission
The recent introduction of DA includes the employees that fall under the 5th, 6th, and 7th Pay Commission rates. According to the Finance Ministry’s memorandum issued on November 7, 2024, these are the changes:
• 6th Pay Commission: Specifically, the DA has risen from 239 % to 246%. This revision is effective from July 1, 2024 of the said proposal. For instance, if an employee’s basic salary is ₹43,000, then instead of getting ₹1,02,770 as earlier they will receive ₹1,05,780 as DA.
• 5th Pay Commission: The DA has further risen from 443% to 455% for all employees above the SDLCE from and including July 1, 2024.
• 7th Pay Commission: The DA has increased from 50% to 53% from July 1, 2024. From this date employees will also be paid the outstanding arrears.
How DA is Calculated
Dearness allowance is the amounts that have been offered to various employees based on their basic salary. For instance, under the 6th Pay Commission rules, if the basic pay scale is ₹43000 the DA at 246% would come to ₹ 1,05,780. This adjustment help employees to cope with with inflation better.
What is Dearness Allowance?
DA is one of the very important components of pay scale for the government servants and pensioners. It assists in catering for the additional expenses as a result of inflation of prices. DA is adjusted twice a year, in specific months of January and July, with the requisite recommendations provided by any of the pay commissions. It also depends with the locality where the employee is stationed either in urban, semi urban or rural area.
This hike is in a way a step towards cutting the taxation burden on government employees and pensioners to enable them to better protect themselves against the adverse effects of inflation.
