7th Pay Commission today: Dearness allowance is such money, which is given to government employees to improve their cost of living.
7th Pay Commission today: A new change has been made in the matter of dearness allowance. The Ministry of Labor and Employment of the Modi government has changed the formula for the calculation of dearness allowance. Directly, the Ministry of Labor has changed the base year of Dearness Allowance 2016. A new series of Wage Rate Index (WRI-Wage Rate Index) has been released. 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.
Government changes base year
On the basis of inflation data, the government revises the base year for key economic indicators from time to time. With this, the changes coming in the economy can be reflected and the wage pattern of the workers can be 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?
The amount of dearness allowance is worked out by multiplying the current rate of dearness allowance with the basic pay. The current rate of percentage is 12%, if your basic pay is Rs 56900 DA (56,900 x12)/100.
This formula is used
Percentage of Dearness Allowance = Average of CPI for the last 12 months – 115.76. Now the amount that comes will be divided by 115.76. The score that will come will be multiplied by 100.
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 so that even after rising inflation, there is no difference in the standard of living of the employee. This money is given to government employees, public sector employees and pensioners. Dearness Allowance (DA) was first introduced in India in 1972 from Mumbai. After this, the Central Government started giving dearness allowance to all the government employees.
Change happens every 6 months
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.
