7th Pay Commission: PM Narendra Modi government is likley to make a big announcement regarding pay matrix hike of Central govt employees within this week. According to reports, Centre is likely to increase dearness allowance (DA) for its employees on September 4, after proposed Union Cabinet meeting on Wednesday.
The cabinet is expected to make an announcement on the 5 per cent DA (Dearness Allowance) hike for the central government employees.
If the central govt employees receive a 5 per cent increase, their salary will jump by anywhere between Rs 900 to Rs 12500 per month, depending on the level. The increase in dearness allowance is expected in the wake of a rise in inflation, as per ICPI figures for months between January and June 2019. Currently, the DA for government employees stands at 12 per cent.
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7th Pay Commission: Dearness Allowance calculation
Month AICPI DA%
Jan 307 13.39
Feb 307 14.02
March 309 14.73
April 312 15.49
May 314 16.29
June 316 17.09
July 319 17.67
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 |
Harishankar Tiwari, Former Secretary and Assistant Secretary of All India Audit and Accounts Association, AG Office Brotherhood had said the announcement of hike in the DA of staffers is possible.
He said DA for June 2019 stood at 17.09% as compared to 13.39% in January 2019. The December figures were lower, the reason, the Centre increased the DA by 3%.
How is DA calculated:
For the employees of Central Government
Percentage of DA = {(Average of the All-India Consumer Price Index (Base year -2001 =100) for the last 12 months -115.76)/115.76} x 100
For Central Public Sector Employees
Percentage of DA = {(Average of the All-India Consumer Price Index (Base year -2001 =100) for the last 3 months -126.33)/126.33} x 100
The Dearness Allowance is calculated in the following way:
In June 2019: AICPI -316
Total 12 months: 3673 (301 + 301 + 301 + 302 + 302 + 301 + 307 + 307 + 309 + 312 + 314 + 316) / 12) - (261.4) x 100 / 261.4)
Estimated DA: 17%.
The central govt employees are demanding an increase in the minimum wages up to Rs 26,000 under the 7th Pay Commission as based on fitment factor. Currently, the minimum pay is fixed at Rs 18,000.
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