7th Pay Commission: First time! Government employees’ dearness allowance to touch this level

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7th Pay Commission: Here is good news for nearly 1 crore employees and pensioners of the central and state government.

These employees may soon get three per cent dearness allowance from January 1, 2019, Praygraj based AG Office Brotherhood and ex-Assistant Secretary-General of All India Audit and Accounts Association, Harishankar Tiwari told Zeebiz Online.

According to the calculations made on the basis of Consumer Price Index, the DA has been set to move closer to three per cent. This is the first time after the implementation of 7th pay commission on January 1, 2016, when dearness allowance may increase by 3 per cent.

According to experts calculating DA, dearness allowance may stay at 3% or more from 2019. If the consumer price index of December month rises to 6 per cent, then the employees may get up to 4 per cent DA.

If there is a deficit of 26 points in the consumer price index, then the DA will be 2 per cent. But the likelihood of such a decrease in the Consumer Price Index is unlikely. It is believed that employees can get DA closer to 3%.

What is DA or Dearness Allowance

Dearness Allowance is such money which is given to improve the living condition of the government employees of the country, keeping inflation in mind.

Only India, Pakistan and Bangladesh are the countries in the world where government employees are given such allowance. This money is given so that even amid rising inflation, the level of employee’s living condition doesn’t worsen because of lack of money. DA is given to government employees, public sector enterprises’ employees and pensioners.

According to the portal, DA is currently based on the All India Consumer Price Index (Industrial Workers). Until the 5th CPC, the All India Consumer Price Index Number for Industrial Workers 1982 = 100 was used for calculating dearness allowance. But from the 6th Pay Commission onwards, CPI (IW) 2001 = 100 was used for calculating the DA, causing the DA to suddenly shoot up.

The report added that as per the calculations made on the basis of Consumer Price Index (CPI), the DA has been set to move closer to the 3% mark or higher – for the first time since the implementation of 7th pay commission in January 2016. Experts say that if the December CPI reading rises to 6%, the government employees may even get up to 4% DA.

However, if the CPI posts a deficit of 26 points – reportedly an unlikely scenario – the DA will be only 2%.

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