7th CPC DA : A decade-long journey begins!
“The Dearness Allowance calculations as per the recommendations of
the 6th Central Pay Commission come to an end; the method prescribed by
the 7th Central Pay Commission comes into effect from Jan 2016 onward…!”
The 7th Central Pay Commission was appointed in order to evaluate the
methods of calculating the salaries, incentives, benefits, pensions,
retirement benefits, and Dearness Allowance of the Central Government
employees and serving and retired personnel of the Indian defence
forces, and suggest changes, if and when required. Four months have
passed since the Central Pay Commission submitted its final report to
the Centre.
The government at the centre has the discretion to accept, reject, or
modify the recommendations made by the Central Pay Commission. It has
constituted a high-level committee to look into the various suggestions
in the report. The final decision on the implementation of the
recommendations will be made based on the feedback from this empowered
committee.
Meanwhile, the Central Government employees federations met with the
high-level empowered committee to discuss various issues, including
Minimum Wages and Fitment Factor, and to suggest required amendments in
the report.
There is likely to be a delay in the publication of the notification
containing the accepted recommendations by the 7th Pay Commission. Since
the election Model Code of Conduct will be in place until the last week
of May 2016, the Government acceptance notification is expected to be
published in the first week of June. In that case, there are chances
that the revised salaries will be issued from the month of June. Also,
the arrears for the past five months are also likely to be released
then.
Dearness Allowance is one of the much-anticipated topics among
Central Government employees. In its report, the 7th Central Pay
Commission had given a short explanation about Dearness Allowance.
The 6th Central Pay Commission suggested elaborate changes in the
method of calculating Dearness Allowance. This time however, the 7th
Central Pay Commission did not suggest any elaborate changes. It has
suggested that the same process be continued.
We have presented an easy-to-use calculator here for you to calculate
the likely Dearness Allowance hike. (Click to Calculate Expected DA)
We have presented a ready reckoner of the procedures that were
followed when the 5th Central Pay Commission drew to a close and the 6th
Central Pay Commission came into effect, which are very likely to be
followed this time too.
The AICPIN points of only the month of January are available as of
now. The AICPIN points for February will be released tomorrow.
You can come up with approximate AICPIN points for the remaining four months to calculate the approximate Dearness Allowance.
As of January 1, 2016, according to the Centre, the Dearness
Allowance stood at 125 percent. An order of the Ministry of Finance to
this effect will be released soon. In the event that the 7th Central Pay
Commission recommendations come into effect from January 1, 2016
onwards, the salaries of the Central Government employees will be
revised by adding 125 percent to their basic pay. The new Dearness
Allowance hike will be issued from 01.07.2016 onwards.
For example, if the basic pay of an employee, as on 01.01.2016, is
Rs.12,000 (Grade Pay 2800 + 9200), his salary revisions and Dearness
Allowance hikes as per the 6th and 7th Central Pay Commission
recommendations, are given below.
Employee’s Pay as on 1.1.2016 as per the recommendations of 6th CPC
Basic Pay + 125% DA: 12000 + 15000 = 27000
Employee’s Pay as on 1.1.2016 as per the recommendations of 7th CPC
Basic Pay + No DA: 31000 + 0 = 31000
(No Dearness Allowance for the period between Jan to Jun 2016 and the
first instalment of additional DA will be given only on 1.7.2016)
Source:
7thpaycommissionnews.in