7th Pay Commission DA Hike Big Update : A big update has come from the Modi government about the meaning of government employees / pensioners. The government has made a big deal in the Rajya Sabha on the increase in Dearness Allowance and Dearness Relief for central employees and pensioners. Union Minister of State for Finance Pankaj Chaudhary has answered a question related to this in the Rajya Sabha.
Question and Answer in Rajya Sabha
Naranbhai Rathwa in Rajya Sabha on Tuesday 2nd August in written question number 1806 on the increase in DA / DR – Will the Minister of FINANCE be pleased to state whether it is true that wholesale inflation has reached a 30 year high of 15.8 percent , which has resulted in a jump in the Wholesale Price Index (WPI) as well and there are likely indications that the inflation factor will continue to be an upward pressure.
In response to this, Minister of State for Finance Pankaj Choudhary in the Ministry of Finance said – Yes. According to the Wholesale Price Index, the inflation for the month of May 2022 has been recorded at 15.88 percent which is the highest in the last 30 years (since April, 1992). However, the above rate of inflation has now come down to 15.18 percent in the month of June, 2022. Its details are given in Annexure-I.
Only three percent increase
Rajya Sabha MP Naranbhai Rathwa’s second question was whether despite rising WPI, dearness allowance for central government employees and dearness relief for pensioners has increased by only three per cent, and if so, the reasons therefor;Â And whether the Government will sanction DA/DR at higher rates while sanctioning the next installment of DA/DR to Government servants/pensioners considering the increased WPI and if not, the reasons therefor?
Computation of Dearness Allowance Dearness Relief
In response to this, Minister of State for Finance Pankaj Chaudhary said- No. Dearness Allowance (DA) Dearness Relief (DR) for Central Government Employees/Pensioners is not computed on the basis of Inflation Related Wholesale Price Index (WPI). Computation of Dearness Allowance/Dearness Relief for Central Government Employees/Pensioners on the basis of inflation rate as per All India Consumer Price Index for Industrial Workers (AICPI-IW) issued by Labor Bureau (Shimla), Ministry of Labor and Employment is done on.
What is Dearness Allowance?
Dearness Allowance means that the government pays its pensioners, employees, as a percentage of the basic salary of the employee to balance the effect of inflation. It is calculated twice a year, i.e. in January and July. DA varies according to urban, semi-urban and rural areas. It has to be increased due to rising inflation.
