BRAND-NEW DELHI: In a move that may cause walking in incomes of central civil servants before Diwali, the Union government is preparing to change the base year for the consumer price index for commercial workers (CPI-IW).
If everything works out, the government will make its base year 2016, thus paving the way for a possible hike in Dearness Allowance (DA) of the main civil servant.
The decision will benefit at least 48 lakh main civil servants. It is likewise being stated that the central government can release information on the modification in the base year of the Customer Cost Index (CPI-IW) on October 21.
Although, the government has held off the increase in the Dearness Allowance of central workers due to coronavirus infection. At present, the main employees are entitled to the Dearness Allowance at the rate of 17 percent.
In order to promote customer needs in the economy, the federal government had just recently gifted Diwali prepaid cards to main staff members. The prepaid card, which provides an interest totally free loan of Rs 10,000 to central government employees, can be used till March 31, 2021.
The Consumer Price Index (CPI) is a procedure of the aggregate cost level in an economy. The CPI includes a package of typically purchased goods and services. In addition, to measure the retail inflation in the economy, it is also utilized to determine the Dearness Allowance of employees.
