Central Government has given a hike in the Dearness Allowance (DA) to all its employees under the 7th Pay commission.
Union Cabinet approves productivity linked bonus and non-productivity linked Bonus for 2019-2020. More than 30 lakh non-gazetted employees will be benefited by the bonus announcement and total financial implication will be Rs 3,737 crores said Union Minister, Prakash Javadekar while announcing the said bonus.
The Union government has changed the base year for the consumer price index for industrial workers (CPI-IW) which will result in central government employees’ salary hike before Diwali.
Around 48 lakh central government employees will get benefit of the decision.
Currently, the central employees are entitled to the Dearness Allowance at the rate of 17 per cent even though the government has postponed the increase in the DA in view of the coronavirus outbreak.
Recently, the government announced that the Central employees will receive Rs 10,000 advance in advance, which they have to return. However, this amount will be completely interest free and employees will have to refund this amount in 10 installments of Rs 1,000. This amount of Rs 10,000 advance will be available as a prepaid RuPay card. This amount can be spent till 31 March 2021.
A consumer price index measures changes in the price level of a weighted average market basket of consumer goods and services purchased by households.
A CPI is a statistical estimate constructed using the prices of a sample of representative items whose prices are collected periodically. Sub-indices and sub-sub-indices can be computed for different categories and sub-categories of goods and services, being combined to produce the overall index with weights reflecting their shares in the total of the consumer expenditures covered by the index. It is one of several price indices calculated by most national statistical agencies. The annual percentage change in a CPI is used as a measure of inflation.
A CPI can be used to index (i.e. adjust for the effect of inflation) the real value of wages, salaries, and pensions; to regulate prices; and to deflate monetary magnitudes to show changes in real values. In most countries, the CPI, along with the population census, is one of the most closely watched national economic statistics.
