7th Pay Commission DA hike: PM Narendra Modi-led government is expected to give a big Diwali gift to its employees of this Navratna company. According to media reports, Steel Authority of India (SAIL) top management has recommended of 5 per cent Dearness Allowance (DA) hike for its officer's grade employees.
Dearness Allowance Hike of SAIL Officers:
As per reports, the public sector has penned a proposal to Santosh Gangwar, Minister for Labour and Employment in this regard. Notably, if the SAIL management recommendation in regard to the 5 per cent DA hike is accepted by the government, then each officer's grade SAIL employees will get around Rs 5,000 hike in monthly salary.
As per sources, the SAIL has recommended a hike in its officer's grade Dearness Allowance from October 1st, a Diwali month.
If the Centre accepts SAIL management's recommendation, then the DA of SAIL officers would jump up to 62.4 per cent from 57.4 per cent.
Like any other public sector banks, the DA of PSU employees also increases quarterly. The DA is increased keeping the Consumer Price Index (CPI) in mind as DA is a hedge against the rise in inflation, under the 7th Pay Commission recommendation.
DA and AICPI:
DA is linked to the All India Consumer Price Index (AICPI). For DA calculation, AICPI average is taken in the formula.
What is the Dearness Allowance?
Dearness Allowance (DA is basically part of the Basic Salary paid to central/state government employees. DA is directly linked to the cost of living (CoL) adjustment allowance paid to employees and pensioners linked to the Consumer Price Index to offset the impact of inflation.
DA is decided on the basis of the city that varies depending on the employee's office location. DA will be more for the employees in the urban area. While for semi-urban areas and villages employees DA will be less. DA is fully taxable. The government routinely revises DA provided to employees.
What is 7th Pay Commission:
Seventh Pay Commission is an administrative system that is set up by the Government of India to determine the salaries of government employees. It benefits per 1 crore central government employees, including around 53 lakh pensioners.