News India Live, Digital Desk: 8th Pay Commission: The central government has decided to make a big change in the formula of dearness allowance (DA) of central employees. This will affect around 1.2 crore central employees and pensioners.
What is dearness allowance?
Dearness allowance is given to government employees to compensate for increasing inflation. The government amends the basic salary of employees every ten years. DA is determined every six months, which is paid as a percentage of basic salary of employees.
Amendment twice a year
According to the current system, dearness allowance is revised twice a year (January and July). It is announced in March and October. Employees’ organizations are demanding to do it four times a year.
Change in calculation of dearness allowance
Currently, DA is calculated on the basis of All India Consumer Price Index (AICPI). But employees want separate inflation to be evaluated to calculate DA. However, there is no statement from the government on this yet.
DA will be zero in the eighth pay commission
At the beginning of the Eighth Pay Commission, dearness allowance will be zero. After six months, it will be increased according to inflation. Along with this, the original year can also change in the calculation process of DA. Currently, the 2016 is considered to be the original year for calculation, but it can be changed in 2026.
DA salary may include
Employees currently get about 55% DA, which can reach 60% by 2026. Employees demand that it be included in basic salary. The new Pay Commission is expected to be implemented from January 2026. Its process has started and it may take about 15 to 18 months to be implemented.
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