7th Pay Commission Latest News Today: After announcing Diwali gift to government employees with an increase in Dearness Allowance, HRA and TA, the Centre has this week made big change in the calculation of Dearness Allowance (DA). The changes were announced by the Ministry of Labor and Employment.Also Read - 7th Pay Commission: Central Govt. Employees Likely To Get Higher DA, HRA | Complete Details Here

As per the latest update, the new series of Wage Rate Index (WRI) with base year 2016=100 will replace the old series with base year 1963 65=100. Also Read - 7th Pay Commission: House Rent Allowance Likely To Increase by 3% For Govt Employees Soon, But Here’s The Catch

In 2016, the base year for Dearness Allowance was revised. A new series of Wage Rate Indexes has been introduced by the Centre (WRI-Wage Rate Index). As per the updates from the Labor Ministry, the new WRI series, with a base year of 2016=100, will replace the existing series, which had the base year of 1963-65. That is, the manner of calculating the dearness allowance has changed completely. Also Read - How To Save Income Tax Without Using Section 80C? 10 Tips Here

Centre changes base year: It must be noted that the Centre periodically revises the base year for major economic metrics based on inflation data. The revision is based on the economic developments that are occurring, as well as the wage patterns of the employees.

The government employees also need to know that the National Statistical Commission altered the base year of the Wage Rate Index from 1963-65 to 2016 in order to broaden the scope and improve the index’s efficiency, as recommended by the International Labor Organization (ILO).

How to calculate Dearness Allowance? The Dearness Allowance of the Central govt employees is usually revised twice a year, between January and July. The dearness allowance is calculated by multiplying the current rate of dearness allowance by the base wage.