DA to be hiked by 2% from July under 7th Pay Commission recommendations
New Delhi: The government is to approve hiking dearness allowance (DA) to 2 per cent under 7th Pay Commission recommendations, which was accepted by the cabinet with retrospective effect from January 1, 2016.
The 7th Pay Commission recommended the merging of 125 percent dearness allowance into the basic pay.
The central government employees also now get 125 per cent dearness allowance from January, 2016 in pre-revised scales.
The 7th Pay commission recommended new pay matrix, based on the Consumer Price Index 261.42, its effective date in January this year, while the 6th Pay commission had recommended the basic pay based on the Consumer Price Index 115.76 in January 2006.
As per practice, the government uses Consumer Price Index- Industrial Workers ( CPI-IW) data of the past 12 months to arrive at a quantum for the purpose of any DA hike.
Thus, the CPI-IW from July 1, 2015 to June 30, 2016 would be used to take a final call on the matter.
The CPI (IW) of the months July, August, September, October, November, December, January, February, March, April, May and June were 263, 264, 266, 269, 270, 269, 269, 267, 268, 271, 275 and 277 respectively.
The average of the consumer price index -industrial workers (CPI-IW) from July 1, 2015 to June 30, 2016 works out to be 2.90 per cent. Thus the Central government will hike dearness allowance for it employees by 2 per cent as government will not round off the figures for the purpose of calculating dearness allowance.
The proposed hike is in accordance with the accepted formula based on the recommendations of the 6th Pay Commission as 7th Pay Commission recommended to go for ditto in this regard.
Accordingly, new Dearness Allowance Calculation formula is given below:-
(12 Monthly Average) – 261.42
———————————X 100 = D A Percentage (ignore decimals)
261.42
TST
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The 7th Pay Commission recommended the merging of 125 percent dearness allowance into the basic pay. when they implement ?
2.90 means, DA should be 3% then why only 2% increase in DA?
hello sir, meira basic pay 7th pay cammission mei 24200/- ho raha hei kya muje abi ka DA 125% aur isme +jodke milega 24200+11125= 35325/- milega muje…kisi bhai ko sahi se pata hei to reply karo…
Can you imagine by this formula of 261.42 for calculating DA the DA then on till 10 yrs will not be increase more than 3% i.e, maximum
Formula mentioned is absolutely correct.
On 1/1/2016 avg 12 monthly index was 261.42 & respective DA was 125.8 % rounded lowers to 125%. But if we take DA 125% exact 100% neutralisation avg aicpi index works out to be 259.8 which should have taken , not 261.42. Further as per formula u have mentioned DA on revised pay will be 3.5% rounded lowers to 3%
7th PC disappointed by govt and both federations to all employees. why give 2% DA. that also have them. we don't want pl. we are always with railways. railway is our mother. she have 13 lakhs of children.
jab Consumer price index ie 261.42 Jan 2016 se le rahe hain to 12 months ka average ( Jul 15 se ) kyon le rahe hai? Ise Jan 16 se lena chahie. Ya CPI ko Jun 15 ko man kar fix karna chahie.