The increased dearness allowance to employees will come during the new year. There is an assumption that a three percent increase in dearness allowance will be granted to the employees. Till October, an AICPI data had been released and collected to assess inflation. The data of November and December is still awaited.
DA will increase by three percent
Going by media reports, a three per cent increase is expected in DA after the DA revision scheduled to take place in January 2025. Earlier, in October, there was a revision of DA. It was with three percent increase on it. That time, the increase could be termed as bringing it up from 50 percent to 53 percent. This change was implemented with effect from July after announcement made in October.
Waiting for November-December data
For determining the dearness allowance, the data of All India Consumer Price Index (AICPI) is looked into. It is released till October. Simultaneously, figures for November and December were expected to have come in by the end of October. Now then, these may be arriving at the end of January.
DA is revised twice a year
So DA is revised once in six months, which means these will happen twice a year. The calculation of Dearness Allowance makes the use of the figures of All India Consumer Price Index. These figures collected every month are later on computed. The average will show up inflation and then counted from January to June and from July till December.
In September, the AICPI data were 143.3 points, while the October 2024 figure was at 144.5. This is how DA is till now crossing 55 per cent for all. The same thing would define the figures of November and December too. Meanwhile, the November December figures are expected to come in conjunction at the end of January.
If the dearness allowance is 56 percent, the salary will increase by Rs 540
Therefore, an employee today earns a basic salary as determined by the 7th Pay Commission. Thus, as per minimum basic salary, Rs. 18,000 is given. Now, 53% DA is applicable on that basic salary. It would come to Rs. 9,540. On the other hand, if DA goes to 56%, then it will become Rs. 10,080 on a basic of 18,000.
Overall, depriving the general centre employees of benefits on their minimum salary would cost 540. Contrary to this, basic salary given in the country is from Rs. 18,000 to Rs 2.5 lakh.
