DA Announcement and linking factor explored

DA & Linking Factor – What’s expected? – DA Announcement and linking factor explored.

As you all know that DA is calculated based on AICPIN. AICPIN is calculated based on the inflation and the cost of living in various cities. So, what’s going to happen in 7th Pay Commission, let’s read.

In Pay Commission III, the base year was used as (1960 =100).

In 4th Pay Commission, the DA was decided to pay twice a year and also for calculating the DA value the percentage increase in the 12 monthly average of All India Consumer Price Index (base 1960). Also the base year was (1982=100) as the base year.

In 5th Pay Commission, the DA was decided based on (1982=100) as the base year.

In 6th Pay Commission, the DA was decided based on (2001=100) as the base year.

In 7th Pay Commission, should we expect to have the base year as (2011=100)?

When the DA calculation change happened from base year 1982 to base year as 2001, there were a steep increase in the DA percentage, this is because the cost of living has increased multifold and also various cities and items was also included while calculating the real DA.

So, what’s been recommend in the 7th CPC Report

Keeping in mind that the present formulation of DA has worked well over the years, and there are no demands for its alteration, the Commission recommends continuance of the existing formula and methodology for calculating the Dearness Allowance.

and also check out the gazateed notification changes where the linking factor has been included as on AICPIN value as 2016.

Read more:- 7thcpcnews.com