7th Pay Commission news: Despite financial constraints, the Amarinder Singh led Punjab government on Saturday announced a Diwali bonanza for its employees and pensioners.
The employees and pensioners will get a three per cent hike in dearness allowance (DA) with effect from November 1, Finance Minister Manpreet Singh Badal said here.
The Chief Minister, he said, had ordered the hike as a mark of appreciation for the hard work and dedication of the government employees.
"The decision will cost the exchequer an additional Rs 480 crore per annum," said the Finance Minister, adding that the implementation of the decision coincides with the Diwali celebrations for the employees and pensioners of the government.
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.
The calculation of DA is in fact done according to the AICPI data. This is done in the following manner.
June 2019: AICPI-316
Total 12 months: 3673 (301 + 301 + 301 + 302 + 302 + 301 + 307 + 307 + 309 + 312 + 314 + 316) / 12) - (261.4) x100 / 261.4)
Increase in DA: 17% -12% = 5%
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