News India Live, Digital Desk: The central government has planned to make significant changes in the dearness allowance of central employees. This change will directly affect about 1.2 crore employees and pensioners of the country.
What is dearness allowance?
Dearness allowance is the amount that the government gives to employees to reduce the influence of increasing inflation. The basic salary of central employees is changed every decade and on the basis of this dearness allowance is calculated. This allowance is revised twice a year, January and July.
Demand for employees – Amendment every three months
Currently, the central government amends dearness allowance only twice a year, but the employee organizations demand that it be revised every three months on a quarterly basis. Currently this allowance is declared around Holi and Diwali.
How is DA calculated?
Dearness allowance is determined based on data from All India Consumer Price Index (AICPI), which is issued as a labor bureau. Employees say that a separate inflation evaluation system should be created for this process. However, the government has not yet made any official announcement on this.
What will change with the eighth pay commission?
In the Eighth Pay Commission, the dearness allowance of the employees will be reduced to zero in the beginning. After this, it will be revised after six months according to rising inflation. The calculation process of DA will also be changed in the next Pay Commission, in which the base year of inflation can be changed from 2016 to 2026.
Chances of merging DA in basic salary
The DA of employees can reach about 60% by the start of the Eighth Pay Commission. Employees demand that DA be included in the basic salary so that salary can increase further.
The Eighth Pay Commission is scheduled to start from January 2026 and the process of its formation is currently going on, which may take about 15 to 18 months to complete.
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