The central authorities revises the DA and DR for workers primarily based on a formulation.
Currently, over one crore central authorities workers and pensioners are getting 38 per cent dearness allowance
7th Pay Commission: Central authorities workers are quickly prone to get excellent news concerning their salaries, because the Centre is predicted to revise the DA and fitment issue by the top of this month, based on media experiences. The experiences stated the federal government workers’ minimal wage might even see an increase from Rs 18,000 to Rs 26,000 after the hike in fitment issue. The DA can be prone to be elevated by 4 proportion factors to 42 per cent.
The central authorities revises the DA and DR for workers primarily based on a formulation. Following is the formulation:
Dearness Allowance Percentage = ((Average of All-India Consumer Price Index (Base Year 2001=100) for the previous 12 months -115.76)/115.76)x100.
For Central public sector workers: Dearness Allowance Percentage = ((Average of All-India Consumer Price Index (Base Year 2001=100) for the previous 3 months -126.33)/126.33)x100.
DA and DR are revised twice a yr — January and July. Dearness allowance is given to authorities workers, whereas the dearness reduction is for pensioners.
The common CPI-IW of the final 12 months is 372.2 presently. Following the formulation, DA is coming to 42.37 per cent. So, the Union authorities is prone to improve the dearness allowance to 42 per cent on March 31, based on media experiences.
The DA hike might be efficient from January 1, 2023. Currently, over one crore central authorities workers and pensioners are getting 38 per cent dearness allowance.
Last revision in DA was accomplished on September 28, 2022, which was efficient from July 1, 2022. The Centre had elevated DA by 4 proportion factors to 38 per cent primarily based on the share improve in 12 month-to-month common of All India Consumer Price Index for the interval ending June, 2022.
The DA is supplied to workers and pensioners to compensate them for rising costs.
18-Month DA Arrears
On the 18-month DA arrears, the Central authorities has clarified that it’s going to not be “possible” to release the 18-month dearness allowance (DA) arrears for the employees, which was stopped during the Covid-19 pandemic. The government had held back three installments of dearness allowance (DA) and dearness relief (DR) in view of the COVID-19 pandemic in 2020. Since this move, Central government employees and the pensioners have been waiting for an update on the pending arrears.
Fitment Factor
The common fitment factor currently stands at 2.57 per cent. It means that if somebody, let’s say, gets a basic pay of Rs 15,500 in 4200 Grade Pay, his total pay will be Rs 15,500×2.57 or Rs 39,835. The 6th CPC had recommended the fitment ratio at 1.86.
According to the reports, employees are now demanding the government to raise the fitment factor to 3.68. The hike will raise the minimum wage from Rs 18,000 currently to Rs 26,000.
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