After increasing the Dearness Allowance (DA), HRA, and TA of Central government employees, the government has now also made some major changes in DA calculation. The formula was recently revised by the Central Government's Ministry of Labor and Employment.
The latest update clearly states that the new WRI (Wage Rate Index) series, with the base year 2016=100 will replace the existing base year of 1963-65.
Central government makes big changes to DA calculation
The National Statistical Commission changed the base year from 1963-65 to 2016 to widen the range and increase the index's performance. The government changes the base year periodically for important economic metrics based on inflation data. The decision was taken after receiving a recommendation from the International Labor Organization (ILO).
How is DA of Central government employees calculated?
The Dearness Allowance (DA) of Central government employees is updated two times a year between January and July. The DA is calculated by multiplying the current rate of dearness allowance by the base wage. DA is given to government workers, public sector employees, and pensioners. It is given to employees by the Central government to help manage their living expenses.
In other news, recently, it came to light that the Central government is reflecting on an increase in the House Rent Allowance (HRA) of employees after getting requests from lakhs of employees.
The request for the same was done by the Indian Railway Technical Supervisors Association (IRTSA) and the National Federation of Railwaymen (NFIR). Both the organisations are obliging an increase in HRA from January 1.
