7th Pay Commission today: There has been a big change regarding Dearness allowance calculation. DA is such money, which is given to government employees to improve their cost of living.
7th Pay Commission today: There is big news for central employees. Changes have been made regarding the calculation of dearness allowance. The Ministry of Labor and Employment of the Central Government has changed the formula for calculation of Dearness Allowance.
The base year of Dearness Allowance has been changed in 2016. The ministry has released a new series of Wage Rate Index (WRI-Wage Rate Index). 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. That is, now the method of calculation of dearness allowance will change.
Government changes base year
Significantly, on the basis of inflation data, the government revises the base year for key economic indicators from time to time. This is done on the basis of the changes coming in the economy and the wage pattern of the workers is included. 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.
How is Dearness Allowance calculated?
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. Let us tell you that by multiplying the current rate of dearness allowance with the basic pay, the amount of dearness allowance is worked out.
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 to the employees so that even after rising inflation, the living conditions of the employee are not affected. This money is given to government employees, public sector employees and pensioners.
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