7th Pay Commission: DA Hike to Be Announced in July With New Formula? Check Latest News Update Here
Delhi, April 7: Days after Union Minister Anurag Thakur announced a 4% hike in dearness allowance for over 50 lakh Central government employees and pensioners, speculations are rife that the Centre may announce another Dearness Allowance (DA) hike in July on 7th pay commission recommendations.
The DA of the central government employees now stands at 42% following the increase in accordance with the recommendations of the 7th Central Pay Commission.
TimesNow reported that DA may increase by 4% with the data of the past four months. However, the government might implement a new formula for the expected DA hike.┬а7th Pay Commission: When Will Central Government Revise Fitment Factor For Its Employees? Check Latest News Update Here.
The Dearness Allowance is a calculation on inflation and allowance paid to government employees and pensioners in India. Dearness Allowance is calculated as a percentage of an Indian citizen’s basic salary to mitigate the impact of inflation on people.┬а7th Pay Commission Good News: After Assam and Rajasthan, Jharkhand Government To Raise DA by 4%, Decision Likely During Cabinet Meeting on April 6.
The DA for the central government employees is calculated based on the latest Consumer Price Index for Industrial Workers (CPI-IW). The Labour Bureau, a wing of the Labour Ministry, publishes the CPI-IW data every month. There is a set formula to calculate the dearness allowance of central government employees and pensioners.
The dearness allowance is calculated by multiplying the current rate of dearness allowance of the 7th Pay Commission with the basic pay. The current rate of percentage is 12%, if your basic pay is Rs 56,900 DA (56,900 x12)/100. Percentage of Dearness Allowance = Average of CPI for the last 12 months – 115.76. Now the amount that comes will be divided by 115.76. The score that comes will be multiplied by 100.
The Dearness Allowance (DA) is usually revised twice every year in January and July.┬аThe recent DA hike will benefit around 47.58 lakh central government employees and 69.76 lakh central government pensioners. DA and DR will be applicable to central government employees and pensioners with retrospective effect from January 1, 2023.
(The above story first appeared on Today News 24 on Apr 07, 2023 05:54 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website todaynews24.top).
