7th Pay Commission: Good news for Central govt employees! Centre likely to announce 4% DA hike

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7th Pay Commission: Good news for Central govt workers! Centre likely to announce 4% DA hike

7th Pay Commission: There is sweet news 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 experiences, the central authorities is likely to enhance Dearness Allowance (DA) for its workers.

The Labour Ministry has declared the AICPI (All India Consumer Price Index) information that signifies that the Centre might announce at the least 4 per cent hike within the DA. This is to be famous that the hike within the DA may even lead to an increase in central authorities workers’ Travel Allowance (TA) too. 

Last 12 months due to COVID-19 pandemic, the Centre had determined to freeze DA for the central authorities workers until June 2021. So, which means 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 beneath the aegis of 7th 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 will probably be an enormous soar of their earnings as there will probably be a further 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 at the least 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 value of residing adjustment allowance paid to authorities workers and pensioners linked to the Consumer Price Index to offset the affect of inflation. DA is totally 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)/115.76}x 100.

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