The central government is said to have mulled over an increase in Dearness Allowance (DA) of employees coming under 5th, 6th, 7th Pay Commissions. This is intended to allow civil servants to afford the increased cost of living as announced to take effect starting from July 1, 2024.
DA Rates Accordance to the Pay Commissions
For the employees of 6th Pay Commission, the DA has gone up from 239% to 246% of the basic salary. The same way, The DA for those under the 5th Pay Commission has gone up from 443% to 455%. Employees under 7th Pay Commission will now get 53% Dearness Allowance, up from 50%.
Calculation of DA
It means the Dearness Allowance is generally permitted related to the fundamental pay scale of worker. For instance an employee drawing a basic pay of ₹ 43000, under sixth pay commission the DA has been revised from ₹ 1,02,770 to ₹ 1,05,780.
Purpose of DA
Dearness Allowance is that part of salaries for government employees and pensioners. Inflation is used to safeguard an economy against the fluctuations of standard in order to produce a stable life. The government reviews DA rates twice a year in January and July.
This update will agree to it to the fact that employees and pensioners working in urban, semi-urban or rural areas stand to benefit from this increased allowance.
