Big update on 7th Pay Commission: State handed workers gifts! Dearness allowance rose 4%
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The Modi administration at the centre gave a present of dearness allowance, a Diwali bonus, and three months’ worth of arrears to federal employee pensioners in advance of Diwali, all as part of the 7th Pay Commission’s implementation in 2023. In November, the income of workers and pensions of pensioners have risen, and they have also been granted the benefit of three months of arrears and a bonus. The next adjustment to the dearness allowance is scheduled for 2024, although the amount of the increase will be determined by the AICPI statistics released every six months. Based on the AICPI index data through September, it is expected that DA will increase to at least 50% in the next year. Can be crossed.

How much room is there for another 4%–5% DA hike in 2024?


Actually, the DA/DR rates for central personnel and pensioners are revised twice annually, in January and July, based on the half-yearly data of the AICPI index. For 2023, new interest rates have been published, and for 2024, the DA will be updated based on the AICPI data from July to December of that year.

The All India CPI-IW fell by 1.7 points in September 2023, bringing the annual rate to 137.5, and the DA score fell to 48.54 percent, following the release of the AICPI index numbers for July and August 2023, which showed an increase of 2.50%. We still await the publication of the data for the months of October, November, and December. However, the statistics from October, November, and December will determine how much DA there will be in January 2024. If the amount exceeds 49% in October, it is likely to exceed 50% in December, in which case DA may grow again by 4%. The federal government has exclusive discretion over any increase.

When will the new salary guidelines take effect?

Since the Central Government has updated the regulations of DA in conjunction with the creation of the 7th Pay Commission, the remuneration of workers would be revised if the DA rates were raised by another 4% for January 2024 next year, bringing DA to 50%. It was determined that DA would be paid out at a rate of 50%, that this 50% would be added to the employee’s current base wage, and that the DA computation would begin at zero. There are a wide variety of allowances that will see increases of up to 25%.
Since the 7th Pay Commission was established in 2013 and its recommendations were adopted in 2016, some have speculated that the government may need to establish a new pay commission (8th pay commission) if DA decreases to 50% or becomes zero. Or would a new regulation have to be established about raising the compensation? Although it has not been formally announced, it is reasonable to assume that the government will have to consider forming a new pay commission in 2024, since this has been the norm for the last few decades. At one time,
The calculation for the dearness allowance looks like this:

The formula for determining DA for federal workers is as follows: “Average All India Consumer Price Index of the past 12 months (Base Year-2001=100-115.76/115.76X100) The average of the All India Consumer Price Index over a 3-month period (2001 = 100-126.33/126.33) x 100 is the formula for those working in the Central Public Sector. To put it another way, dearness allowance is determined by subtracting the current rate of DA from the base wage and then multiplying the result by

Analysis of the AICPI numbers for September 2023

An affiliated institution of the Ministry of Labour and Employment, the Labour Bureau compiles a monthly Consumer Price Index for Industrial Workers using data gathered from 317 marketplaces in 88 major industrial centres. As of the final business day of the next month, this index is available for all of India and its 88 centres. In this news release, we are announcing the September 2023 index.
The All India Consumer Price Index—Wholesale in September 2023 fell by 1.7 points, landing at 137.5. As a proportion of the previous month, it has decreased by 1.22 percent, whereas in the same month a year ago, it increased by 0.84 percent. Year-on-year inflation for September 2023 is anticipated to be 4.72 percent, while last month it was 6.91 percent and in the same month a year ago it was 6.49 percent. The food inflation rate was also lower at 6.52% than it was at 10.06% last month and 7.76% the previous year in the same month.



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