September AI CPI-IW out. DA Expected to Cross 50% from January 2024

-


The Labour Bureau has published the All-India Consumer Price Index for Industrial Workers (CPI-IW) for the month of September 2023. The All-India CPI-IW declined by 1.7 points in September 2023, from 139.2 in August 2023.

Based on the indices till August 2023, the expected DA for central government employees from January 2024 was expected to cross 50%. However, even with the CPI-IW declining by 1.7 points in October 2023, still the DA can be 50% from January 2024. However, the chances of it becoming 51% is less.

For the calculation of the DA, CPI-IW indices for 12 months, i.e. January 2023 to December 2024 are required. The indices for three more months are required to calculate the exact DA. Based on the indices till September 2023, the expected DA for central government employees from January 2024 is almost certain to cross 50%. This is an increase of 4 percentage points from the current DA of 46%.

However, the DA touching the 50% milestone will have additional benefits as a hike in allowances such as HRA, CEA and others.

Earlier this month, the government hiked DA to 46% from July 2023. The orders for bonuses were also released this month.

Central government employees are also waiting for the constitution of the 8th Pay Commission. The 7th Pay Commission was implemented in 2016, and it is due for a revision.

What does this mean for central government employees?

If the DA crosses 50% from January 2024, it will be a significant increase for central government employees. This will lead to a hike in their salaries and allowances. It will also be a boost to the economy, as central government employees have a large disposable income.

The constitution of the 8th Pay Commission is also a key demand of central government employees. The 7th Pay Commission was implemented in 2016, and it is due for a revision. The 8th Pay Commission is expected to recommend a further increase in salaries and allowances for central government employees.

Conclusion

The news that the DA for central government employees is expected to cross 50% from January 2024 is a welcome development. This will be a significant increase for central government employees and will boost the economy. The constitution of the 8th Pay Commission is also a key demand of central government employees, and it is expected to recommend a further increase in salaries and allowances 

Comments

Post a Comment

Popular posts from this blog

50% Dearness Allowance (DA) & Dearness Relief (DR) expected from Jan, 2024

-
Labour Bureau has published All-India Consumer Price Index for Industrial Workers (CPI-IW) for September 2023 which recorded a sharp decrease by 1.7 points, resulting in an index value of 137.5 (one hundred thirty-seven point five). This crucial economic indicator is instrumental in calculating the Dearness Allowance (DA) & Dearness Relief (DR) for Central Government Employees and Pensioners, and the recent dip in the CPI-IW index has far-reaching implications for their financial well-being. The decline in the CPI-IW Index may initially raise concerns; however, it leads to a promising development for Central Government Employees and Pensioners. Despite the decrease in the index, the expected DA/DR from January 2024 is anticipated to increase by a substantial 4%. This increase will propel the DA/DR to reach an impressive 50% in the 7th Central Pay Commission (CPC), greatly benefiting those who rely on these allowances and benefits to maintain their standard of living. While the decl
Read more

India’s 8th Pay Commission: A Potential Windfall for Central Government Employees

-
  Amidst the rising cost of living and inflation, central government employees await a potential financial relief as the   8th Pay Commission   takes center stage in national discourse. This proposed commission, speculated to be implemented by 2026, could see a significant increase in salaries and benefits for central government employees. A Proposed Leap in Salaries According to sources, the implementation of the 8th Pay Commission could hike the salaries of central government employees by  44 percent  from next year. At present, the minimum salary for these employees fluctuates between Rs 18,000 to Rs 56,900 per month. With the new pay commission in place, their monthly compensation might see an increase to at least Rs 25,000. The Crucial Fitment Factor The debate over the  fitment factor  for the 8th Pay Commission also gains momentum. This factor determines the multiplication used to calculate the new minimum wage. If the government retains the current fitment factor at 2.57 times,
Read more