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Tag: 7th Pay Commission update

  • seventh Pay Commission: Your month-to-month PF contribution could change from July

    The central authorities has frozen Dearness Allowance (DA) for the central authorities staff until June 2021. While saying the choice, Centre stated that they may proceed to announce DA on time however it will not get added in central authorities servant’s wage until June 2021.

    However, they made it clear that after, the DA is restored, all three instalments of DA arrears — January to June 2020, July to December 2020 and January to June 2021 — will likely be added in CGS’ wage. Since, month-to-month Provident Fund (PF) contribution is calculated on the idea of a central authorities’s fundamental wage plus DA. The DA hike will result in rise in a single’s month-to-month PF contribution or PF stability within the long-term.

    How will DA go northward:

    If there isn’t any additional extension within the DA profit being given beneath seventh CPC (Central Pay Commission) to the central authorities servants (CGS), there will likely be big bounce in central authorities staff’ DA. As per the AICPI (All India Consumer Price Index) newest knowledge, one can count on at the least 4 per cent DA hike for January to June 2021 interval. Apart from this, 3 per cent DA introduced for January to June 2020 and 4 per cent DA introduced for July to December 2020 can also be anticipated to get added in central authorities staff’ current DA, which is presently at 17 per cent. So, in case of no furtehr extension nof DA freeze, a central authorities worker’s DA could be anticipated to go as much as 28 per cent from current 17 per cent.

    How DA rise will result in extra PF contribution:

    As month-to-month PF contribution is set on the idea of 1’s fundamental wage plus DA. The rise in DA from current 17 per cent to twenty-eight per cent won’t solely result in rise in central authorities staff’ month-to-month wage. It will result in rise of their month-to-month PF contribution as effectively. And it is a well-known undeniable fact that rise in PF contribution means rise in PF stability in the long term as extra PF curiosity will get added in a single’s PF account.

    Benefit for pensioners

    Like 52 lakh central authorities staff, 58 lakh retired central authorities staff or pensioners are additionally eagerly ready for his or her Dearness Relief (DR) profit restoration as heart has freezed each DA and DR until June 2021. Pensioners’ DR profit may get restored from July 2021 if there isn’t any additional extension in DR profit freezed until June 2021. Like DA for central authorities staff, heart offers DR profit to the retired central authorities staff to assist them beat the warmth of inflation. In this DR profit, a pensioner’s DR will get elevated robotically when the DA hike is introduced. So, DA restoration may carry cheer on the face of neasr 58 lakh central authorities pensioners.

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  • 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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