New Delhi: There is important news for millions of central government employees and pensioners. The central government has decided to change the old formula of dearness allowance (DA) calculation.
The central government has recently released a new list of Wage Rate Index with Aadhaar Year 2016.
The new series of Wage Rate Index will change the formula for calculation of DA of government employees and change the base year of DA.
According to the Ministry of Labor released a new series of WRIs with the base year 2016 = 100 which is being compiled and maintained by the Labor Bureau, an affiliated office of the Ministry of Labor and Employment. The new series of WRI with Aadhaar 2016 = 100 will replace the old series with Aadhaar 1963-65 = 100.
The government of India periodically revises the base year for major economic indicators to reflect changes in the economy and to understand the pay pattern of workers. Thus, as per the recommendations of the International Labor Organization (ILO), National Statistics Commission (NSC) etc., the base year for WRI was revised from 1963-65 = 100 to 2016 = 100 by the Bureau of Labor under the Ministry of Labor and Employment. The government said that this will help in increasing its coverage and improving the representation of the index.
The new series of Wage Rate Index 2016 = 100 will now replace the old series (1963-65 = 100) which is almost six decades old. The new series has increased the scope and coverage in terms of number of industries, sample size, business under selected industries, weightage of industries, etc. In addition, the expert group has also released the Wage Rate Index (WRI) for July 2016 to July 2020 based on the new series of 2016 = 100.