The 7th Pay Commission headed justice A K Mathur has correctly predicted the dearness allowance (DA) hike to 125 per cent from the existing 119 per cent since January 2016.
The 7th Pay Commission in its report, submitted to Finance Minister Arun Jaitley, said that fitment of pay matrix of the central government employees was made assuming that the rate of Dearness Allowance (DA) would be 125 percent at the time of implementation of the new pay as on January 2016.
The average rate of retail inflation for industrial workers from January 1, 2015 to December 31, 2015 works out to be 6.82 percent, according Consumer Price Index—Industrial Workers data for December was released by Labour Ministry today.
Thus, entitling the central government employees to 6 percent additional DA from January 1, 2016.
The DA of employees would increase from 119 per cent on July 1, 2015 to 125 per cent on January 1, 2016.
However, the central government employees’ unions are not very enthused by the 6 per cent hike in the dearness allowance as their demand of implementation of 7th Pay Commission award with higher minimum pay as well as some modifications in their favours.
It is added that the Empowered Committee of Secretaries (CoS) headed by Cabinet Secretary P K Sinha for processing the report of the 7th Central Pay Commission, will hold its first meeting on February 2 to review the pay commission recommendations.