Ashok Kumar Mathur-7th Pay Commission: Cabinet approved merger of 50% DA with Pay and 7th Pay Commission Terms of Reference
In order to benefit over 50 lakh employees and over 30 lakh pensioners, the Union Cabinet approved terms of reference for seventh pay commission. This includes merging dearness allowance above 50% with basic pay.
At present, Dearness Allowance (DA) is around 90% of basic pay and another hike of 10% is expected soon. DA is calculated on the basis of change in retail inflation.
As per practice, the government uses CPI-IW data of the past 12 months to arrive at a quantum for the purpose of any DA hike. Thus, the retail inflation for industrial workers between January 1 to December 31, 2013 would be used to take a final call on the matter.
Note: To revise the salary structure of Union government employees from both civil and military services, the Union Government constituted the 7th Central Pay Commission under the chairmanship of Mr. Ashok Kumar Mathur, a retired Supreme Court judge and retired chairman of Armed Forces Tribunal.