The center employees DE rate reached 53% by October. Central government employees gained three percent DE over Basic wage as of September 1, 2021 under the 7th Pay Commission. After this, the expected estimated DE rates for January 2025 have been made, so there are speculations that it may be nominal TAM due to the speculation of DE rate rise and its adjustment into the basic wage.
January’s dearness allowance
After festivals, Central government while increasing dearness allowance in October thus increased DA by 3% Due to which 50% DA exceeded 53% DA; hence fresh speculations hovered upon the merger of DA with the basic salary of the employees by January 1, 2025. There is a new update to the ongoing discussions.
DA went above 50 percent from July 1
At present, the government led by Prime Minister Narendra Modi has done the 0ctober gift at Diwali. At that moment it was increased by 3 percent to imply the DA of 50% had increased to 53% that started at the earlier date of July 1, 2024; in short, it amounts to surpass 50%.
Government gave new update
The most reliable government information suggests that the merger of DA into the basic salary gets another early update, but there were no new advances in the government stances. Still present, however, is the fact that at present there is again no certainty in any such an idea as the merger of dearness allowance into the basic salary. DA has definitely crossed the limit of 50 percent, but the realization of any such change has stuck for a while now.
Demand for merger has been raised earlier also
The earlier moments when DA reached above 50 percent are having such speculation where merging of DAs has been asked, as according to the fifth Pay Commission also, DA had crossed 50 percent. It has crossed 50 percent even before this generation, but the stand was quite clear; and it was ordered to be merged into basic.
How much will DA increase
Government has stated clearly that it is not going to merge DA into the basic pay, while a report emerges that DA will increase by 3% by January 2025. At this point, DA will go up to 56%, thus providing much of the benefit to the employees and pensioners.
