7th Pay Commission DA Hike 8th Pay Commission Update: The government has changed the way the allowance is calculated as we await the second Dearness Allowance DA revision of the year.
According to media reports, DA for central government employees and DR for pensioners will not be calculated with the new base year, after the amendment by the Ministry of Labor and Employment.
The government regularly changes the base year to keep an eye on inflation. According to reports, the change in the new formula will affect the salaries of central government employees and will also be reflected in their pay scales.
The Union ministry reportedly changed 2016 to the base year for DA calculations. The most recent pay rate index series is published. The base year for the new series will be 2016=100, unlike the previous series with the base year 1963–1965.
The National Statistical Commission (NSC) changed the base year from 1963-1965 to 2016 to increase coverage and boost the effectiveness of the wage rate index. This was done with the suggestions given by the International Labor Organization (ILO).
DA Update: How Dearness Allowance is Calculated
As per the rules of 7th Pay Commission, the amount of DA is calculated using the basic pay of the employee at the prevailing rate. This calculation will be (Basic Pay x 12) / 100 using the current percentage rate of 12 percent. The DA percentage is equal to 115.76 – the average 12-month CPI (Consumer Price Index). The answer will be multiplied by 100 after dividing by 115.76.
Meanwhile, the DA figure will jump to 38 per cent with the proposed 4% hike for central employees.
According to Chowdhary, “Dearness Allowance (DA) is paid to the Central Government employees to compensate for the fall in the actual value of their wages as a result of inflation, and the rate of DA is increased every six months on a rate basis basis. is amended from time to time. Inflation rate as per All India Consumer Price Index (AlCPl-LW) for industrial workers released by Labor Bureau under Ministry of Labor and Employment.
Choudhary had earlier this month advised Parliament that there was no need to set up a new pay commission to review the salaries, allowances and pensions of employees and pensioners.
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