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7th Pay Commission – Centre likely to hike DA before Festive Season

7th Pay Commission – Centre likely to hike DA before Festive Season – Union Finance Minister Arun Jaitley is expected to move the proposal of hike in DA on the basis of accepted formula for calculation under the 7th Pay Commission recommendation.

7th pay commission allowance – Ahead of festive season  the Centre is likely to hike dearness allowance (DA) by 2 per cent, which would benefit its over 10 million central government employees and pensioners, a top Finance Ministry’s official indicated.

The 7th Pay Commission recommended the merging of 125 percent dearness allowance into the basic pay. Union Finance Minister Arun Jaitley is expected to move the proposal of hike in DA on the basis of accepted formula for calculation under the 7th Pay Commission recommendation.

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 this matter.

An Official in Anonymous indicated, the government is likely to hike dearness allowance (DA) by 2 per cent ahead of the Dusshera festival. Union Finance Minister Arun Jaitley is likely to move the proposal of hike in DA on the basis of accepted formula for calculation under the 7th Pay Commission recommendation, while the Union Cabinet is expected to clear the proposal of hike in DA in the next meeting. The 7th Pay Commission recommended the merging of 125 percent dearness allowance into the basic pay.

The Central government is likely to hike dearness allowance (DA) by 2 per cent, based on the data of the Consumer Price Index- Industrial Workers ( CPI-IW). “Average rate of Consumer Price Index-Industrial Labour from July 2015 to June, 2016 was 2.90 per cent. Thus, the Centre will increase dearness allowance by two as per accepted formula for calculation,” a Finance Ministry official working on the implementation of the 7th Pay Commission recommendations reportedly quoted.

“Average rate of Consumer Price Index-Industrial Labour from July 2015 to June, 2016 was 2.90 per cent. Thus, the Centre will increase dearness allowance by two as per accepted formula for calculation,” the official said.

“The proposed hike in DA is in accordance with the accepted formula based on the recommendations of the 6th Pay Commission as the 7th Pay Commission recommended to go for ditto in this regard,” he added.

Unlike the 6th Pay commission, which had recommended the basic pay based on the Consumer Price Index 115.76 in January 2006, 7th Pay commission recommended new pay matrix, based on the Consumer Price Index 261.42. The government will use the data of CPI-IW from July 1, 2015 to June 30, 2016. 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.

Earlier in April this year, DA was increased to 125 per cent from 119 per cent which was effective from January 1, 2016.

Source: India.com

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