7th pay commission: Dearness allowance set to be increased even as Central government employees, retirees wait for pay hike news

Jul 19, 2018, 10:47 AM IST

7th pay commission: Central government employees will get some relief from the Centre in the form of dearness allowance in the days to come even as their bigger demands for a big salary hike is hanging fire. It has been revealed that the government machinery is working to give central government employees and retirees a helping hand.


7th pay commission: A good news that has just been revealed is that employees are set to get monetary relief as Centre is looking set to modify the index and base year for calculating dearness allowance. Image source: PTI


7th pay commission: As many as  11 million employees and retirees will benefit from this dearness allowance move by the government which is expected to happen soon. The existing CPI-IW has 2001 as the base year. "The move is likely to benefit 11 million employees and pensioners. The last revision in the base year was in 2006 by the Sixth Central Pay Commission to 2001 from 1982," an Economic Times report said. Image source: PTI


7th pay commission: This will come quickly on the heels of another dearness allowance hike that was announced in March, 2018 by the Union Cabinet. Based on 7th Pay Commission recommendations, dearness allowance was increased from 5 per cent to 7 per cent. Image source: PTI


7th pay commission: Now, a new series of consumer price index (CPI) is being worked out to determine the dearness allowance for industrial workers, according to ET. Image source: PTI


7th pay commission: Dearness Allowance (DA) is a cost of living adjustment allowance paid to government employees. DA is calculated as a percentage of employee's basic salary to mitigate the impact of inflation on people. Image source: PTI



7th Pay Commission: Labour bureau has reportedly finalised the new CPI-IW with base year 2016. "It is proposed that the base be revised every six years to capture the changes in living expenses more quickly, a government official told to ET. Image source: PTI



7th Pay Commission: However, the bigger demand of central government employees and pensioners is still hanging fire. They want a hike in basic minimum pay from Rs 18,000 to Rs 26,000 and a fitment factor 3.68 times from 2.57 times.There had been reports that the government was mulling to raise minimum pay to Rs 21,000 and fitment factor to 3.00, but that is no longer on the table. Image source: PTI