7th Pay Commission 2024
The dearness benefit of employees under the 7th Pay Commission will not be zero, as there is no specific rule regarding this. Central employees will continue to receive dearness allowance up to 50% from January 2024. Speculations that the dearness allowance might become zero have been debunked, as calculations for DA increase will carry on without changes to the base year.
7th Pay Commission: Dearness Allowance
The dearness allowance for government employees is determined by the AICPI-IW index numbers between January and June, which will dictate the amount of DA from July 2024. As of now, the AICPI index for dearness allowance stands at 52.43%, and experts predict a potential increase of up to 3%. The official announcement regarding the DA for central employees is expected to be made by the government in September or October, following the completion of data collection and approval processes.
7th Pay Commission: Life Insurance Premium?
An important aspect to consider is the potential increase in life insurance premiums, which may see a rise of up to 3% along with the DA hike. The dearness allowance is likely to reach 53% based on the current trend and index numbers, highlighting a significant increase for government employees. Despite uncertainties surrounding the DA calculations, it is confirmed that there will be no zero allowance, ensuring a boost in benefits for central employees.
7th Pay Commission: When will the central government make the announcement?
The central government is expected to announce the dearness allowance for government employees in the coming months, with a projected increase of around 3%. The announcement is anticipated to be made in September or October, after taking into account the complete data for the months of June. The process of approval by the Finance Ministry and subsequent cabinet approval will set the stage for the implementation of the DA increase from July 2024, with arrears being paid for the intervening months.
