seventh Pay Commission: Good information for Central govt workers! Centre prone to announce 4% DA hike

Image Source : ANI/ REPRESENTATIONAL seventh Pay Commission: Good information for Central govt workers! Centre prone to announce 4% DA hike
seventh Pay Commission: There is nice information for lakhs of central authorities workers who’re ready for the announcement of hike within the Dearness Allowance (DA) for January to June 2021 interval. According to media reviews, the central authorities is prone to improve Dearness Allowance (DA) for its workers.

The Labour Ministry has declared the AICPI (All India Consumer Price Index) information that signifies that the Centre could announce no less than 4 per cent hike within the DA. This is to be famous that the hike within the DA may even result in an increase in central authorities workers’ Travel Allowance (TA) too. 

Last 12 months resulting from COVID-19 pandemic, the Centre had determined to freeze DA for the central authorities workers until June 2021. So, because of this even after the federal government’s DA hike announcement, the wage hike will happen solely after June 2021.

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So, 4 per cent DA hike for July to December 2020 and the anticipated 4 per cent DA hike for January to June 2020 below the aegis of seventh pay fee is not going to mirror within the month-to-month wage of the govt. staffers.

However, this cannot be ignored that after the DA hike will get added into the central authorities workers’ wage, there might be an enormous soar of their earnings as there might be an extra 8 per cent hike of their DA.

Currently, the central authorities workers’ DA is 17 per cent of their fundamental wage. Once the DA will get restored then their DA will go up from 17 per cent to no less than 25 per cent (17 + 4 + 4).

What is Dearness Allowance (DA)

Dearness Allowance (DA) is principally a part of wage paid to authorities workers. DA is a price of dwelling adjustment allowance paid to authorities workers and pensioners linked to the Consumer Price Index to offset the impression of inflation. DA is absolutely taxable.

DA and AICPI

DA is linked to the All India Consumer Price Index (AICPI). For DA calculation, AICPI common is taken within the formulation.

How is DA calculated:

Percentage of DA = (Average of All-India Consumer Price Index for the previous 12 months (Base 12 months 2001=100) -115.76)/115.76x 100.

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