seventh Pay Fee: Extra Wage Hike For Workers Probably In July As DA To Be Hiked 4%; New System

seventh Pay Fee Replace: After a 4 per cent hike in DA for central authorities staff lately efficient January 1, the federal government is prone to increase the dearness allowance by one other 4 per cent in July this 12 months, in accordance with media reviews. DA and DR are revised twice a 12 months — January and July. The reviews additionally mentioned that the DA hike is prone to be based mostly on a revised components for calculation.

Dearness allowance is given to authorities staff, whereas the dearness reduction is for pensioners.

In accordance with the media reviews, the labour ministry revised the DA calculation components and altered the bottom 12 months of dearness allowance in 2016 and launched a brand new sequence of Wage Charge Index (WRI-Wage Charge Index). The ministry mentioned the brand new sequence of WRI with base 12 months 2016=100 changed the outdated sequence of the bottom 12 months 1963-65.

How DA is Calculated At the moment?

The central authorities revises the DA and DR for workers based mostly on a components. Following is the components:

Dearness Allowance Share = ((Common of All-India Shopper Worth Index (Base Yr 2001=100) for the previous 12 months -115.76)/115.76)x100.

For Central public sector staff: Dearness Allowance Share = ((Common of All-India Shopper Worth Index (Base Yr 2001=100) for the previous 3 months -126.33)/126.33)x100.

How A lot Has Wage Elevated After Latest 4% DA Hike?

The 4 per cent hike in DA and dearness reduction (DR) will improve the wage of 47.58 lakh central authorities staff and pension quantity for 69.76 lakh pensioners. The DA is given to staff based mostly on the essential pay of the workers.

For instance, if a authorities worker’s month-to-month take-home wage is about Rs 42,000 and the Fundamental Pay is round Rs 25,500; then he/ she have to be getting Rs 9,690 because the dearness allowance. Now, this DA quantity will improve to Rs 10,710 after the newest 4 per cent DA hike. So, there might be a rise of Rs 1,020 in month-to-month take-home wage on this case.

The earlier revision in DA was finished on September 28, 2022, which was efficient from July 1, 2022. The Centre had elevated DA by 4 share factors to 38 per cent based mostly on the proportion improve within the 12-month common of the All India Shopper Worth Index for the interval ending June 2022.

The DA is offered to staff and pensioners to compensate them for rising costs.

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