After the Lok Sabha elections, there is good news for employees and pensioners. Reports suggest that employees and pensioners might receive two significant gifts together. Considering the earnest demands raised by employees, the Central Government may make a significant decision regarding the 8th Pay Commission. Additionally, there might be an increase in Dearness Allowance (DA) in July. However, there hasn’t been any official statement or confirmation from the government regarding this matter.
DA Hike in July: 4% Increase or Will it be Zero?
Typically, the Central Government revises the rates of DA/DR for employees and pensioners twice a year, in January and July, based on the All India Consumer Price Index (AICPI) numbers. A 4% increase in DA was implemented from January 2024, which will remain applicable until June. The next DA hike is expected from July 2024, which will depend on the AICPI numbers from January to June 2024.
As of January, there was a slight increase of 0.1 points in the All India CPI-IWU, reaching 138.9. However, the figures for February and March are yet to be released, leading to uncertainty. If the figures are released after the elections and show an increase, DA could reach up to 54%. If the figures are not released, the government may invoke its rule of making DA zero once it reaches 50%. In such a scenario, DA calculation would start from zero, or a new formula might be introduced regarding salary calculation until the next Pay Commission is implemented.
Will the 8th Pay Commission be Implemented After the Elections?
Discussions about the 8th Pay Commission have gained momentum again amidst the Lok Sabha elections. Recently, the Indian Railway Technical Supervisor Association (IRTSA) wrote a letter to the Ministry of Personnel, demanding the formation of the 8th Central Pay Commission. The Federation AIRF has also demanded the government to implement the 8th Pay Commission and has written a letter to the Cabinet Secretary.
According to sources, the government might make a significant decision on this matter after the elections since it still has ample time. Additionally, DA has already reached 50%. Although the government has previously stated that there is no consideration at the moment, and no proposal has been made.
If the new government after the Lok Sabha elections accepts this demand and implements the 8th Pay Commission, it will directly benefit around 12 million employees and pensioners in the country. There will also be significant changes in pension along with salary. Previously, the 7th Pay Commission was constituted in 2013, and its recommendations were implemented in 2016.
Expected Salary Increase
If, for instance, someone’s basic salary is Rs. 50,000, and DA is increased by 4% in July, there will be an increase of Rs. 2000 in the salary. Furthermore, if there is a decision regarding the 8th Pay Commission and considering the recommendations of the 7th Pay Commission, there could be an additional increase. If a similar increase is implemented, employees with a basic salary of Rs. 50,000 could witness an increase of Rs. 11,775 in their salary. Other allowances and rates for house rent allowance might also see revisions. However, official confirmation is still pending.
This update brings a ray of hope for employees and pensioners, and all eyes are now on the government to see how it responds to these demands and expectations. Stay tuned for further updates on this matter.