Monday, July 12, 2010

Expected Dearness Allowance from July 2010 for Central Government Employees

The second installment for this year (2010) of Dearness Allowance (DA) is awaited with lots of expectation as the prices of essential commodities skyrocket...

The main expectation among lakhs of Central Government Employees will be announcement of the next additional installment of Dearness Allowance (DA) for this year July 2010. The reasons are many:
Employees getting only 3% annual increment for one year and those who are getting promotion, they are also getting only Grade Pay difference + 3% annual increment after waiting for several years. But nowadays employees are getting Dearness allowance percentage much more than annual increment due to coverall consumer commodities price increases.

Dearness Allowance is an essential component of salary, it is based on monthly All India Consumer Price Index for Industrial Workers (Base year 2001-100) announced by the Labour Bureau – Government of India from time to time. After 6th CPC only the Government directed that the Dearness Allowance has to be calculated based on AICPIN with the base year 2001-100.

Dearness Allowance (DA) from Jan-2010 to Jun-2010 should be 8% with appropriate proof. Some had doubt about this, but the Government accepted and the 8% Dearness Allowance (DA) was announced (19.03.2010) from Jan-2010.

As of now, the situation demands increase in Dearness Allowance (DA) from Jul-2010 to Dec-2010 should be 44% and it will be confirmed only when the All India Consumer Price Index (AICPIN) for May and June to be published. But when the index value 170 decreases to 165 or lower for the next two months, the Dearness Allowance (DA) will be 8%. If it increases from 170 to 173 and above, there is a chance that the Dearness Allowance (DA) shoots up to 10%. Till now, we can conclude that additional Dearness Allowance (DA) will be 9% because there is no relief in the prices of essential commodities. But the Government will be strictly monitoring the situation and control prices that the AICPIN (All India Consumer Price Index Number for Industrial Workers (CPI-IW) on base 2001=100) value doesn’t go up.

In the next year, when DA crosses 50%, all allowances will get a hike up to 25% as per the 6th CPC recommendations. This will bring some relief to the employees. The Pensioners, State Government employees and who are all getting pay as per 5th CPC also looks forward eagerly awaiting the announcement of increase in Dearness Allowance (DA). One needs to wait for this announcement expected after two months.
Expected Dearness Allowance from July-2010
Blog Post
DA rates 1986 to Jan 2010

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