Friday, August 19, 2016

Central Govt Employees DA to be hiked by 2% from July under 7th Pay Commission recommendations

Central Government  Employees DA to be hiked by 2% from July under 7th Pay Commission recommendations
7th-pay-commission-DA-expected-da

New Delhi: The government is to approve hiking dearness allowance (DA) to 2 per cent under 7th Pay Commission recommendations, which was accepted by the cabinet with retrospective effect from January 1, 2016.

The 7th Pay Commission recommended the merging of 125 percent dearness allowance into the basic pay.

The central government employees also now get 125 per cent dearness allowance from January, 2016 in pre-revised scales.

The 7th Pay commission recommended new pay matrix, based on the Consumer Price Index 261.42, its effective date in January this year, while the 6th Pay commission had recommended the basic pay based on the Consumer Price Index 115.76 in January 2006.

As per practice, the government uses Consumer Price Index- Industrial Workers ( CPI-IW) data of the past 12 months to arrive at a quantum for the purpose of any DA hike.

Thus, the CPI-IW from July 1, 2015 to June 30, 2016 would be used to take a final call on the matter.
The CPI (IW) of the months July, August, September, October, November, December, January, February, March, April, May and June were 263, 264, 266, 269, 270, 269, 269, 267, 268, 271, 275 and 277 respectively.

The average of the consumer price index -industrial workers (CPI-IW) from July 1, 2015 to June 30, 2016 works out to be 2.90 per cent. Thus the Central government will hike dearness allowance for it employees by 2 per cent as government will not round off the figures for the purpose of calculating dearness allowance.
The proposed hike is in accordance with the accepted formula based on the recommendations of the 6th Pay Commission as 7th Pay Commission recommended to go for ditto in this regard.

Accordingly, new Dearness Allowance Calculation formula is given below:-

(12 Monthly Average) – 261.42
———————————X 100 = D A Percentage (ignore decimals)
261.42

TST

0 comments:

Post a Comment

Now Trending

34% DA Order for Central Govt Employees wef 01.01.2022 - Latest CG Employees DA Order Jan 2022

 DA Order for Central Government Employees from Jan 2022 - Finmin Order 2022 Latest CG Employees DA Order Jan 2022 Dearness Allowance payabl...

Disclaimer:

All efforts have been made to ensure accuracy of the content on this blog, the same should not be construed as a statement of law or used for any legal purposes. Our blog "Central Government Staff news" accepts no responsibility in relation to the accuracy, completeness, usefulness or otherwise, of the contents. Users are advised to verify/check any information with the relevant department(s) and/or other source(s), and to obtain any appropriate professional advice before acting on the information provided in the blog.

Links to other websites that have been included on this blog are provided for public convenience only.

The blog "Central Government Staff news" is not responsible for the contents or reliability of linked websites and does not necessarily endorse the view expressed within them. We cannot guarantee the availability of such linked pages at all times.

Any suggestions write to us
centralgovernmentnews@gmail.com