7th Pay Commission: Central government likely to hike DA

If everything goes well, the government will make its base year 2016, thus paving the way for a possible hike in Dearness Allowance (DA) of central government employees.

The Union government is reportedly planning to change the base year for the consumer price index for industrial workers (CPI-IW) which will result in central government employees’ salary hike before Diwali.

According to reports, the government will make its base year 2016, following which the Dearness Allowance (DA) of central government employees possibly get hiked.

Around 48 lakh central government employees will get benefit of the decision.

It is also reported that the central government likely to release details in this regard tomorrow.

Currently, the central employees are entitled to the Dearness Allowance at the rate of 17 per cent even though the government has postponed the increase in the DA in view of the coronavirus outbreak.

Recently, the government announced that the Central employees will receive Rs 10,000 advance in advance, which they have to return. However, this amount will be completely interest free and employees will have to refund this amount in 10 installments of Rs 1,000. This amount of Rs 10,000 advance will be available as a prepaid RuPay card. This amount can be spent till 31 March 2021.

A consumer price index measures changes in the price level of a weighted average market basket of consumer goods and services purchased by households.

A CPI is a statistical estimate constructed using the prices of a sample of representative items whose prices are collected periodically. Sub-indices and sub-sub-indices can be computed for different categories and sub-categories of goods and services, being combined to produce the overall index with weights reflecting their shares in the total of the consumer expenditures covered by the index. It is one of several price indices calculated by most national statistical agencies. The annual percentage change in a CPI is used as a measure of inflation. A CPI can be used to index (i.e. adjust for the effect of inflation) the real value of wages, salaries, and pensions; to regulate prices; and to deflate monetary magnitudes to show changes in real values. In most countries, the CPI, along with the population census, is one of the most closely watched national economic statistics.

(With inputs from zeenews.india.com)

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7 Comments
  1. Netra Ranjan Sharma says

    what about state government employee?

  2. Netra Ranjan Sharma says

    State Government employee DA when govt. release?

  3. Muralidharan says

    The article is informative and useful.Thanks.

  4. Amit Kumar says

    What propaganda you are spreading, Central Government employees and pensioners are not going to get enhanced DA untill June 2021. So, what is the point in hike.

  5. jayanta kumar panda says

    In such a devastating situation and state of bankruptcy of millions of people who are not able to get stuff to satisfy their Hunger the announcement of Dearness allowance to Govt employees by the centre is quite ridiculous. Government have playing cards not paying heed to the grief of the needy

  6. jayanta kumar panda says

    Govt must act as a government. Hike in DA is not at all appropriate

  7. VS Kataria says

    Presently, Central Govt have given relief to Central Govt employees by way giving Bonus, LTA/LIC other to celebrate Diwali and all festivals coming ahead, but pain full to say ZERO for pensioners . Request to Central Govt kindly do indeed financial relief for pensioners enable them to survive upto some extent.

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