DA DR Zero: There have been many crucial decisions this year for central employees. The government has approved the creation of the 8th Pay Commission, which will lead to a significant change in the salary structure of the employees. Further, some income tax relief has also been provided to employees in Budget 2025. The limit for earning income tax free has now been increased from Rs 10.95 lakh to Rs 12.75 lakh. In addition, new updates concerning Dearness Allowance (DA) have also begun to pour in and may alter salary structures of the employees.
Prepare To See DA zero?
There are many questions raised on the minds of employees regarding Dearness Allowance (DA) and Dearness Relief (DR). Some allowances are likely to be removed during the 8th Pay Commission. As per reports, the reduction of the dearness allowance of central employees along with dearness relief of retired employees up to zero is in cards. As per provisions of the 5th Pay Commission, once DA and DR cross 50%, they would get merged in basic salary and basic pension. This rule, however, was not implemented in the 6th and the 7th Pay Commission.
What Was The Provision Of 7th Pay Commission?
According to the 7th Pay Commission, the salary of central employees and pensioners was determined using fitment factor. This commission did not have any provision of adding DA into basic salary. On the other hand, dearness allowance is worked out independently, and it is revised biannually.
Revised Dearness Allowance Every Six Months
The central government revises it every January and July of the year. But right after the 8th Pay Commission is established, dearness allowance (DA) is likely to zero. It will not decrease the salary of the employees but will categorize DA under the new pay commission scheme for the second category.
When Will Dearness Allowance Be At Zero?
Dearness allowance becomes crucial as a component of salary and also in the pension of employees. After the activation of the new pay commission, it becomes zero regarding DA and will be constructed as per the new pay structure. Then, it will be updated every six months to the new dearness allowances and relief.
What Impact Will It Have On Employees?
In case of zero dearness allowance, the employees’ salary structure would be subject to alteration. However, the possibility of an increase in salary cannot be ruled out as a result of the new rules enforced by the Pay Commission. They will need to keep abreast of the recommendations of the Pay Commission as well as government policies that develop in time so that they can glean clearer meanings from future plans.
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