The Central Government today, on Wednesday, has increased the Dearness Allowance or DA for central employees by 3 percent. Due to this dearness allowance has become 34 percent of the basic pay. This decision will benefit more than 50 lakh government employees and 65 lakh pensioners.
new Delhi. The Central Government today, on Wednesday, has announced a 3 percent increase in Dearness Allowance or DA for central employees. Now this allowance has increased from 31 per cent to 34 per cent. This decision will benefit more than 50 lakh government employees and 65 lakh pensioners. This increase in dearness allowance will be applicable from January 1.
Let us tell you that this increase is according to the accepted formula, which is based on the recommendations of the Seventh Central Pay Commission (7th Pay Commission). The combined impact on the exchequer on account of both dearness allowance and dearness relief would be around ₹9,544 crore per annum, the government said in a statement. This will benefit about 47.68 lakh central government employees and 68.62 lakh pensioners.
Amidst rising prices of petrol, diesel and rising inflation, the increase in dearness allowance has brought a big relief for the central government employees.
Meeting chaired by the prime minister
The Union Cabinet, chaired by Prime Minister Narendra Modi, approved the release of additional installment of Dearness Allowance (DA) to employees and Dearness Relief (DR) to pensioners. Let us tell you that retail inflation or consumer price inflation for 2 months this year remains intact from the upper end of the Reserve Bank of India’s target of 2-6 percent.
DA Hike: How Dearness Allowance is Calculated
In 2006, the central government changed the formula for calculating dearness allowance for central employees and pensioners.
How to Calculate for Central Employees:
Dearness Allowance % = ((Average of All-India Consumer Price Index (Base Year 2001=100) for the past 12 months -115.76)/115.76)*100.
For Central Public Sector Employees:
Dearness Allowance % = ((Average of All-India Consumer Price Index (Base Year 2001=100) for the past 3 months -126.33)/126.33)*100
Now, according to the All India Consumer Price Index, central government employees were seeing a 3 percent increase in dearness allowance for themselves.
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