7th Pay Commission latest news today 2018: Dearness Allowance hike for Central government employees, more DR for pensioners
7th Pay Commission latest news today: The Union Cabinet chaired by Prime Minister Shri Narendra Modi on Wednesday approved to release an additional instalment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners.
)
08:44 PM IST
7th Pay Commission latest news today: The Union Cabinet chaired by Prime Minister Narendra Modi on Wednesday approved to release an additional instalment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners. The hike would apply with effect from 01.07.2018 (July 01, 2018), representing an increase of 2% over the existing rate of 7% of the Basic Pay/Pension, to compensate for price rise, an official statement said today. The DA and DR hike is in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission.
Impact on the exchequer
The combined impact on the exchequer on account of both Dearness Allowance and Dearness Relief would be Rs 6112.20 crore per annum and Rs 4074.80 crore in the financial year 2018-19 (for a period of 08 months from July 2018 to February 2019).
Who will benefit
Modi government's latest decision will benefit about 48.41 lakh Central government employees and 62.03 lakh pensioners.
The Dearness Allowance (DA) is paid to Central Government employees to adjust the cost of living and to protect their Basic Pay from erosion in the real value on account of inflation. Presently, DA is based on the All India Consumer Price Index (Industrial Workers). According to the 7th pay Commission report, "the real pay in government is protected by providing Dearness Allowance (DA), which is that percentage of pay by which the CPI (IW)16 increases over a fixed base value...Consequently, the absolute amount of DA keeps on growing with every point increase in CPI (IW)."
Watch this Zee Business video
Apart from DA, the government provides house rent, transport, location and function specific allowances besides Leave Travel Allowance (LTA) which, along with the basic pay, constitute the gross pay of a government employee.
The 7th CPC report had said,"Keeping in mind that the present formulation of DA has worked well over the years, and there are no demands for its alteration, the Commission recommends continuance of the existing formula and methodology for calculating the Dearness Allowance."
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
)
)
)
)
)
)
)
8th Pay Commission Pay Matrix: At 2.28 fitment factor, what can be revised basic pay for employees with basic salary of Rs 24,200, Rs 30,200, Rs 40,600 and Rs 61,000
DA Hike Latest Update: Cabinet may raise dearness allowance by 2% today; know how it impact your basic salaries of Rs 24,600, Rs 37,500, Rs 54,300, and Rs 71,700
8th Pay Commission News: What may be your revised pay if your current basic salary is Rs 20,300, Rs 40,600, Rs 50,400, or Rs 70,000?
8th Pay Commission Pay Hike: As Central government employees wait for 8th Pay Commission basic pay hike details, here's how their salaries have grown in 4th, 5th, 6th, 7th commissions
8th Pay Commission Updates: As Nirmala Sitharaman shares update, can maximum basic pay be more than Rs 6.40 lakh in new pay commission?
