7th Pay Commission: There's good news for Central government employees ahead of the festive season. According to reports, these employees are expected to get a massive hike in DA (Dearness Allowance). These employees are expected to get around 5 per cent hike in DA, with this it would reach 17.67 per cent for the month of July 2019. Staffers are waiting for confirmation from the Centre in this regard.
Meanwhile, the AICPI (All India Consumer Price Index) data for July 2019 has also come, which shows hike to 319 points from 316 points in June 2019.
Earlier, we had reported that from January to June 2019, DA in July-December 2019 is set to increase by 5%. If the hike is even 5 per cent, then the salary of central government employees will increase from Rs 900 to Rs 12500 per month.
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Harishankar Tiwari, former president of the AG office brotherhood, Prayagraj, who computed the DA, told 'Zee Business' Digital that the AICPI for July 2019 has risen. However, there will be less increase in the coming months. Because in winter, the rate of fruits and vegetables falls. This affects AICPI. But it will be good as compared to that of last year.
At present, the Central government employees are getting 12 per cent DA for January-June 2019, which was implemented in January 2019. Keeping in mind the increased AICPI number in July, the Centre may announce the increase in DA of its staffers anytime soon.
DA and AICPI:
DA is linked to the All India Consumer Price Index (AICPI). For DA calculation, AICPI average is taken in the formula.
What do AICPI figures say:
|
Month
|
AICPI |
DA% |
|
January
|
307 |
13.39 |
|
February
|
307 |
14.02 |
|
March
|
309 |
14.73 |
|
April
|
312 |
15.49 |
|
May
|
314 |
16.29 |
|
June
|
316 |
17.09 |
|
July
|
319 |
17.67 |
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What is the Dearness Allowance?
Dearness Allowance (DA is part of the Basic Salary paid to government employees. DA is directly linked to the cost of living (CoL) adjustment allowance paid to government employees and pensioners linked to the Consumer Price Index to offset the impact of inflation. DA is fully taxable. The government routinely revises DA provided to employees.
DA is decided on the basis of the city that varies depending on the employee's office location. DA will be more for the employees in the urban area. While for semi-urban areas and villages employees DA will be less.
How is DA calculated:
Percentage of DA = {(Average of All-India Consumer Price Index for the past 12 months (Base year 2001=100) -115.76)/115.76}x 100.
Seventh Pay Commission is an administrative system that is set up by the Government of India to determine the salaries of government employees. It benefits per 1 crore central government employees, including around 53 lakh pensioners.
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