Mumbai2 days ago
The Modi government has given a big gift to the central employees amid rising inflation and corona epidemic. The government has increased the dearness allowance i.e. DA of central employees from 17% to 28%. Its benefit will be available only from 1 July 2021. The Cabinet Committee of Economic Affairs (CCEA) approved this decision on Wednesday.
This decision of the government will benefit more than 50 lakh central employees and 61 lakh pensioners. For this, the government will spend about Rs 34,401 crore.
Earlier, due to the Corona epidemic, the increase in DA of employees and pensioners was banned till June 2021. In such a situation, they will benefit from the latest decision. Central government employees and pensioners are yet to get 3 installments of DA. These installments were to be paid on 1 January 2020, 1 July 2020 and 1 January 2021.
What is Dearness Allowance (DA)?
Dearness allowance is a part of salary. It is a fixed percentage of the basic salary of the employee. To reduce the effect of inflation in the country, the government gives dearness allowance to its employees. It is extended from time to time. Retired employees also get the benefit of this.
How will the salary change after DA?
For this, fill your salary in the formula given below.
(Basic Pay + Grade Pay) × DA % = DA Amount
Understand in simple language, after adding the grade salary to the basic salary, the rate of dearness allowance is multiplied in that salary. The result that comes is called Dearness Allowance (DA). Now let’s understand this with an example, suppose your basic salary is 10 thousand rupees and grade pay is 1000 rupees. On adding the two, the total became 11 thousand rupees. Now in terms of the increased dearness allowance of 28%, then it is Rs 3080. By adding all your total salary came to Rs 14,080. Earlier, in terms of 17% DA, you were getting a salary of Rs 12,870. Now by increasing the DA by 11% to 28%, there is a profit of Rs 1210 every month.
Wholesale inflation rises to 12.07% in June
The government released the wholesale inflation data for June on Wednesday. Accordingly, the Wholesale Price Index (WPI) declined to 12.07% in June, rising to a record 12.94% for the fifth consecutive month in May. At the same time, the wholesale inflation rate in June 2020 was 1.81%. According to Commerce and Industry, the biggest reason for the wholesale inflation rate exceeding 12% in June is the cost of mineral oil. This includes jet fuel including petrol, diesel, nafta. Apart from this, the prices of manufactured products such as basic metals and food products have also increased.
Retail inflation above 6% for second consecutive month
The retail inflation rate in the country has been recorded above 6 per cent for the second consecutive month. According to data released by the government, retail inflation stood at 6.26 per cent in June this year, which is just four basis points lower than May’s level of 6.3 per cent. According to data from the National Statistics Office, inflation in the food basket was recorded at 5.15 per cent in June, up from 5.01 per cent in May.