7th Pay Commission Central government employees latest news: DA formula changed – know how it will impact your salary

7th Pay Commission Central government employees latest news: The government has changed the formula of dearness allowance (DA) calculation for government employees and pensioners. The Ministry of Labor and Employment has revised the base year. The government revises the base year from time to time keeping in mind the inflation data. 

The change in the base year will be reflected on the wage pattern of the employees.

The Labor Ministry has changed the base year 2016 for Dearness Allowance (DA Calculation). A new series of Wage Rate Index (WRI-Wage Rate Index) has been released. The Ministry said that the new series of WRI with base year 2016=100 will replace the old series of base year 1963-65.  

According to the recommendations of the International Labor Organization (ILO), the National Statistical Commission, the base year of the Wage Rate Index has been changed from 1963-65 to 2016 to widen the scope and make the index more efficient. 

The amount of dearness allowance is worked out by multiplying the current rate of dearness allowance of the 7th Pay Commission with the basic pay.  

The current rate of percentage is 12 per cent, if your basic pay is Rs 56,900 DA (56,900 x12)/100. Percentage of Dearness Allowance = Average of CPI for the last 12 months - 115.76. Now the amount that comes will be divided by 115.76. The score that will come will be multiplied by 100. 

Dearness Allowance hiked by 4% 

There has been an increase of 4 per cent in the dearness allowance for July 2022, which means the Central government employees will get 38 per cent DA.   

What is Dearness Allowance (DA)? 

Dearness allowance given to government and private sector employees and pensioners as well to aide their cost of living. DA was first introduced in India in 1972. After this, the Central government started giving dearness allowance to all the government employees.