7th Pay Commission: Dearness Allowance reached 50% at the beginning of the year 2024. Many other allowances of central government employees have been increased in the last few months.
Now there have been media reports that the basic salary of central government employees and pensioners has increased during the next increase in Dearness Allowance or Dearness Relief. Usually, DA and DR of central government employees and pensioners increase from July.
With DA and DR touching the limit of 50%, there is speculation that DA and DR will automatically be added to the basic salary. This will increase the basic salary of lakhs of central government employees and pensioners in the country. Are central government employees and pensioners expecting an increase in basic salary from July 2024? Will this change happen in future? This is the question being asked by lakhs of central government employees.
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Will DA and DR be added to the basic salary?
Speculations began when the issue of merging DA with basic salary after crossing the 50% limit came up. The Fifth Pay Commission report (para 105.11) had recommended merging DA with basic salary and terming such merger as dearness pay. Following this recommendation, 50% of DA was merged with basic salary to form dearness pay for the purpose of calculation of allowances and retirement benefits in 2004. But this was later changed. However, this change will not happen automatically. The government will have to take a decision on this.
Right now dearness allowance is 50%
Central Government Employees are getting dearness allowance at the rate of 50 percent. The government had increased the dearness allowance from 46 percent to 50 percent in March. This was implemented from January 1, 2024. However, when DA increased to 50 percent, it was believed that it would now be added to the basic salary and DA would be calculated separately. However, this will not happen. Even if DA is 50 percent, it will not be added to the basic salary. Even after the DA increases next time, it will be calculated on the basis of basic salary.
