What happens if DA crosses 50%?
What happens if DA crosses 50%?
(61% – 50% = 11%) 50% of dearness allowance was merged with basic pay and the remaining 11% was issued as normal dearness allowance with effect from 1.1. 2004. Example: An employee’s Basic Pay had revised as under on 1.1.
How is basic salary calculated in dearness allowance?
The current rate of Dearness allowance multiply with your basic salary is Dearness allowance. For example, the existing rate of percentage is 12%, if your basic salary is Rs. 49000. The DA is (49000 x 12) /100.
Is DA included in basic salary?
Presently, it stands at 50% of the basic salary. This has been a result of the constant enhancement in the DA ever year to offset the adverse effects of inflation. As per the rules, it is a practice to merge the DA with basic salary when it crosses the level of 50%.
How much DA was merged in 7th Pay Commission?
Latest Update on 7th Pay Commission In a move that will benefit over 1.1 crore central government employees and pensioners, the Centre has hiked the Dearness Allowance by 3 per cent to 12 per cent.
What happens when DA reaches 50 in 7th Pay Commission?
According to the Department of Expenditure, when the dearness allowance reaches 50 percent, the maximum house rent allowance will increase to 30 percent.
How DA is calculated in private sector salary?
Calculation of Dearness Allowance
- For Central Government employees: Dearness Allowance % = ((Average of AICPI (Base Year 2001=100) for the past 12 months -115.76)/115.76)*100.
- For Central public sector employees: Dearness Allowance % = ((Average of AICPI (Base Year 2001=100) for the past 3 months -126.33)/126.33)*100.
How is da calculated?
The formulae for calculating dearness allowance are as under: For central government employees: DA% = ((Average of AICPI (Base Year 2001=100) for the past 12 months -115.76)/115.76)100 For central public sector employees: DA% = ((Average of AICPI (Base Year 2001=100) for the past 3 months -126.33)/126.33)100 Here.
What is TA DA and HRA in salary?
TA means Travel Allowance, DA means Dearness Allowance, and HRA means House Rent Allowance.
When does da need to be merged with pay?
The 5th CPC had recommended that the DA must be merged with pay and treated as pay for computing all allowances as and when the percentage of Dearness compensation exceeds 50%. Accordingly even before the setting up of the 6th CPC the DA to the extent of 50% was merged with pay.
When did 50 percent of Da become basic pay?
50% Dearness Allowance (DA) Merger with Basic Salary In the year 2004, 50 percent of dearness allowance was merged with basic pay for Central Government Employees and Pensioners with effect from 1.4.2004.
When did the 3rd CPC merge the da?
In other words, the recommendation of the 3rd CPC was to merge the DA when it crossed 36%. The Government in the National Council JCM at the time of negotiation initially agreed to merge 60% DA and later the whole of the DA before the 4th CPC was set up. The 5th CPC merged 98% of DA with pay.
When was 50 percent of Dearness Allowance merged with basic pay?
In the year 2004, 50 percent of dearness allowance was merged with basic pay for Central Government Employees and Pensioners with effect from 1.4.2004.
