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7th Pay Commission Latest News From 4% DA hike to 18-month arrears: The 7th Pay Commission’s matrix is now used to determine how Central Government employees and retirees are paid their pensions and salaries. The 7th Pay Commission’s recommendations are additionally used to adjust the DA/DR rate.

The second half of 2022 is when central government employees can anticipate a rise in their Dearness Allowance. Due to the rise in the All-India Consumer Price index for Industrial Workers, employees and pensioners anticipate a 4% increase in the rates of dearness allowance (DA) and dearness relief (DR) (AlCPl-lW).

The Union Ministry of Finance claims that DA is paid to central government employees as compensation for the fact that rising inflation has decreased the real value of their income. Every six months, this rate is updated using AICPI-IW data. Now that the first half of this year is in the books, employees and pensioners hope that the new DA/DR rate will soon be made public.

The Union Minister of State for Minister recently stated in the Parliament that “Dearness Allowances (DA) is paid to them and the rate of DA is amended periodically every 6 months to compensate Central Government Employees for erosion in the real worth of their salaries due to inflation.”

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7th Pay Commission Latest News From 4% DA hike to 18-month arrears

In order to prepare for the second Dearness Allowance (DA) revision of the year, the government modified the way the allowance is calculated. According to Zee Business, DA for central government employees and DR for pensioners won’t be computed with a new base year following adjustment by the Ministry of Labour and Employment.

The base year is frequently modified by the government in order to account for inflation. According to sources, the new formula adjustment will have an impact on the pay scale and salaries of central government personnel.

According to reports, the Union Ministry altered 2016 to be the base year for DA estimates. The most recent series of the wage rate index has been released. In contrast to the previous series’ the base year of 1963–1965, the basis year for the latest series will be 2016=100.

To increase the scope and efficacy of the wage rate index, the National Statistical Commission (NSC) altered the base year from 1963–1965 to 2016. The International Labor Organization’s recommendations were used to carry this out (ILO).

The employee’s basic pay at the current rate is used to determine the DA amount in accordance with the rules established by the 7th Pay Commission. (Basic Pay x 12)/100 is the formula to use. utilizing the current interest rate of 12%. 115.76, or the average 12-month CPI, is what the DA percentage equals (Consumer Price Index). The result will be multiplied by 100 following a division by 115.76.

With the anticipated 4% raise for central staff, the DA percentage will increase to 38 percent.

“Dearness Allowances (DA) are paid to Central Government employees to compensate them for the erosion in the real value of their salaries as a result of inflation,” says Chaudhary. “The rate of DA is periodically revised every six months based on the rate of inflation as per All India Consumer Price Index for Industrial Workers (AlCPl-LW), released by the Labour Bureau under M/o Labour & Employment.

Discussion on 8th Pay Commission

The administration has stated clearly that it is not taking any recommendations under consideration to establish the 8th pay commission and raise the pensions and wages of central government workers and retirees, respectively. The Government may at any moment make certain adjustments to the payments made to these employees and pensioners, in accordance with the recommendations of the 7th Pay Commission.

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FAQs on 7th Pay Commission Latest News

What recent changes have been made to the 7th pay?

Although DA was reduced during the seventh pay commission, gross pay grew. From July 1, 2022, onward, the employees’ current DA rate of 34% is anticipated to increase to 38%.

Can the 8th Pay Commission possibly happen?

The assertion that there won’t be an 8th Central Pay Commission to review the salaries, allowances, and pension of Central Government Workers and pensioners has been refuted by the Union Government.

Who is the chairman of the 7th pay commission?

Justice AK Mathur is the chairman of the 7th pay commission

Who proposed the Seventh Pay Commission?

The Government of India established the Seventh Central Pay Commission (CPC) on February 28, 2014. The commission, which was led by Justice Ashok Kumar Mathur, turned in its verdict on November 19, 2015.

When was the 7th Pay Commission established?

On June 29, 2016, the Union Cabinet approved the proposals of the Seventh Pay Panel. 

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