The DA is supplied to workers and pensioners to compensate them for rising costs.
The central authorities revises the DA and DR for workers primarily based on a components
7th Pay Commission: In a bonanza for 47.58 lakh central authorities workers, the Central final week hiked the dearness allowance (DA) by 4 per cent for them, thus elevating their salaries. The 4% DA hike has turn out to be efficient from January 2023. Here’s how the federal government calculated the DA hike:
How is DA Hike Decision Taken?
The DA is supplied to workers and pensioners to compensate them for rising costs. The central authorities revises the DA and DR for workers primarily based on a components. 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. Following is the components:
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.
The common CPI-IW of the final 12 months is 372.2 at present. Following the components, DA is coming to 42.37 per cent. So, the Union authorities elevated the dearness allowance to 42 per cent.
How Much Salary Will It Raise?
Let’s say if a authorities worker’s month-to-month take-home wage is about Rs 42,000 and the Basic 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 shall be a rise of Rs 1,020 in month-to-month take-home wage on this case.
Similarly, the month-to-month pension will even improve for 69.76 lakh pensioners. For instance, if somebody will get a primary pension of Rs 30,000 a month, then he used to get Rs 11,400 as dearness reduction. Now, the quantity will improve to Rs 12,600, thus elevating the pension by Rs 800 per thirty days.
Before this, the earlier revision in DA was achieved 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.
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