7th Pay Commission latest news today: Ministry of Labor has changed the base year 2016 for Dearness Allowance (DA Calculation). A new series of Wage Rate Index (WRI-Wage Rate Index) has been released.
7th Pay Commission latest news today: There is a big update for central government employees and pensioners. Regarding dearness allowance, the Ministry of Labor and Employment has changed the formula of calculation. Keeping in mind the inflation data, the government revises the base year for key economic indicators from time to time. With this, the changes in the economy can be reflected and the wage pattern of the workers can be included.
Labor Ministry changed base year
The Labor Ministry has changed the base year 2016 for Dearness Allowance (DA Calculation). A new series of Wage Rate Index (WRI-Wage Rate Index) has been released. The Labor Ministry said that the new series of WRI with base year 2016=100 will replace the old series of base year 1963-65. According to the recommendations of the International Labor Organization (ILO), the National Statistical Commission, the base year of the Wage Rate Index has been changed from 1963-65 to 2016 to widen the scope and make the index more efficient.
Which formula is used to calculate DA?
The amount of dearness allowance is worked out 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 56900 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 will come will be multiplied by 100.
Dearness Allowance hiked by 4%
There has been an increase of 4 percent in the dearness allowance for July 2022. Now central employees will get the benefit of 38 percent dearness allowance. It will be paid in September 2022 with arrears of two months. The dearness allowance is decided on the numbers of the AICPI-IW index. In June 2022, this figure stood at 129.2. Due to this it was decided that dearness allowance has increased by 4 percent. The DA of the employees is linked to it.
What is Dearness Allowance (DA)?
Dearness allowance is such money, which is given to government employees to improve their cost of living. This money is given so that even after rising inflation, there is no difference in the standard of living of the employee. This money is given to government employees, public sector employees and pensioners. Dearness Allowance (DA) was first introduced in India in 1972 from Mumbai. After this, the Central Government started giving dearness allowance to all the government employees.
Dearness allowance changes every 6 months
Dearness allowance is given to improve the standard of living and food of the employees. Dearness allowance is given so that even after rising inflation, the employees do not face any problem in living their lives. Usually the Dearness Allowance is changed every 6 months, in January and July.
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