DA Hike Alert: Central government employees to get huge salary hike after this new dearness allowance update

DA Hike Alert: Central government employees are likely to get huge benefit in the upcoming year as there can be a tremendous increase in their salaries. There are many reasons for this, including an increase in dearness allowance, change in the fitment factor, and HRA revision.

4% dearness allowance is applicable for central employees from January 2023. Photo: ZeeBiz

DA Hike Alert: Central government employees are likely to get huge benefit in the upcoming year as there can be a tremendous increase in their salaries. There are many reasons for this, including an increase in dearness allowance, change in the fitment factor, and HRA revision.

Dearness allowance (DA) for the central government employees was earlier calculated on the basis of the Consumer Price Index (AICPI) with the base year 2001, but from September 2020, the central government has changed the base year to 2016 for the calculation of dearness allowance.

Complete details of how the salary increment will happen have been given.

TRENDING NOW

How much dearness allowance can increase from January 2023?

For central employees, 4% dearness allowance is applicable from January 2023.

Now the next revision will be done in July 2023. In such a situation, the biggest question is that how much salary increase is expected this time.

It will depend on the change in the numbers of the new Consumer Price Index (AICPI).

So far, the total DA score has reached 133.3 points, which means 44.46 per cent dearness allowance has been done.

This figure is only for March.

The April number will be declared at the end of May.

There is a possibility of a boom this time too.

Even if there is no jump in salary, the DA score will increase.

Roughly, DA will be 45 per cent.

The figures for May and June are yet to come.

The DA is expected to increase further by 1 per cent.

What is the current dearness allowance for central government employees?

The current DA for central government employees is 38 per cent.

If there is an increase of 4 percent in this, it will reach 46 per cent.

Due to this, there will be a big jump in the salary of employees.

But for that, they have to wait for three months.

The whole picture will be clear after the numbers of April, May, and June are released.

Has the government revised the 7th CPC fitment factor?

There is no change in the 7th CPC fitment factor. At present, under the fitment factor, central government employees are getting salary according to 2.57 times.

However, there has been a demand to increase it for a long time.

At present, the basic salary at Level 1 is Rs 18,000.

It was decided on the basis of the fitment factor only.

If the fitment factor is increased, the basic salary will also increase.

It can be increased to 3 times or 3.67 times.

How else can the basic salary of central employees increase?

There is most likely to be a big jump in the salary of central employees in 2024.

Because, this year, DA can cross 50 per cent.

If there is a 4 per cent increase in July 2023, DA will be 46 per cent.

If DA increases rapidly by 4 per cent even in January 2024, then it will reach 50 per cent.

In such a situation, the total DA will be reduced to zero (0).

When the government had changed the base year, it had also implemented this rule that if there is 50% DA, it would be made zero and its money would be added to the basic salary of employees.

After this, DA will start from zero.

There will be a significant jump in HRA of central employees

According to the 7th Pay Commission, if DA becomes zero, it has to be added to the basic salary.

But, the revision of HRA will happen only on the 50 per cent DA hike.

According to a circular of DoPT, there will be an increase of 3 per cent in HRA if the DA is 50 per cent.

HRA is given in three categories.

The existing rates of HRA are 27 per cent, 18 per cent and 9 per cent.

When the DA limit crossed 25 per cent, HRA rates were fixed at 27 per cent, 18 per cent, and 9 per cent .

The next revision in house rent allowance will be 3 per cent.

The maximum rate of HRA will increase from the existing 27 per cent to 30 per cent.

But, this will happen when the DA revise will cross the 50 per cent limit.

How much HRA will increase in different categories?

According to the memorandum, HRA will be 30 per cent, 20 per cent and 10 per cent when DA crosses 50 per cent.

The category of House Rent Allowance (HRA) is according to X, Y and Z class cities.

The central employees who fall in the X category are getting 27% HRA, which will be 30% if DA is 50%.

At the same time, for Y class people, it will increase from 18 percent to 20 percent.

For Z class people, it will increase from 9 percent to 10 percent.

TAGS:

Dearness Allowance (DA)