Centre may announce 2% DA for staff, pensioners: PTI

Centre may announce 2% DA for staff, pensioners: PTI

New Delhi, Oct 26 (PTI) In what could bring cheers to 50 lakh central employees and 58 lakh pensioners ahead of Diwali, the Centre is all set to announce 2 per cent dearness allowance to be effective from July 1, 2016.

"The proposal to provide 2 per cent dearness allowance and dearness relief to central government employees and pensioners respectively, is listed on agenda of the Union Cabinet meeting scheduled for tomorrow," a source said.

Dearness allowance and dearness relief is provided to employees and pensioners to neutralise the impact of price rise on their earnings.

Earlier this year the government hiked Dearness Allowance by 6 per cent to 125 per cent of the basic pay. The DA was later merged into the basic pay following implementation of 7th Pay Commission award.

The central government employee unions want that the DA should be increased by 3 per cent and not 2 per cent which is being considered by the centre.

President of Confederation of Central Government Employees K K N Kutty told PTI: "The 12-month average of Consumer Price Index for Industrial Workers from July 1, 2015 to June 30, 2016, works out to be 2.92 per cent. Therefore the unions had pressed for 3 per cent DA. We are not satisfied with this." 

As per the agreed formula, government increases DA on the basis of 12-month average of the retail inflation and does not consider the price rise rate beyond decimal point for deciding the rate of dearness allowance.

Read at PTI

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Dearness Allowance announcement before Diwali ?

Dearness Allowance announcement before Diwali ?

Usually Government approves the dearness allowance during the 1st week of September and release the government order in 3rd or 4th week of September, but this year government not yet approved dearness allowance from 1.7.2016. After 7th Pay Commission Implementation the dearness allowance computation formula & the base year must be changed, the computation formula & base year changed in the earlier pay commission also

Base year for every pay commission

Pay Commission	Base Year
3rd Pay Commission	1960 =100
4th Pay Commission	1982=100
5th Pay Commission	1982=100
6th Pay Commission	2001=100
7th Pay Commission	2011=100  (expected)

During September 1st week JCM Staff side Secretary writes letter to Ministry of Finance with the subject “Future computation of Dearness Allowance and adoption base index figure to Revised Minimum Wage”, in this letter Union demands to grant of 3% dearness allowance with effect from 1.7.2016, even though there is no official announcement from the government. Even all the state government employees are waiting for the announcement from the Central government.

And again last week Union writes letter to the Secretary, Ministry of Finance to grant the dearness allowance at the earliest.

Dearness allowance from 01/07/2016 should be 3%

Dearness Allowance (DA) Formula after 7th Pay Commission (assumption)

=((12 Months Average of AICPIN)-261.4)*100/261.4)

All the government employees are eagerly waiting for the announcement from the government. As per the source the dearness allowance announcement will be released before Diwali festival. Hope this announcement will be a Diwali gift for Central government employees.

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5th, 6th and 7th CPC DA TABLE : Dearness Allowance & Dearness Relief Table for Central Government Employees and Pensioners

5th, 6th and 7th CPC DA TABLE : Dearness Allowance & Dearness Relief Table for Central Government Employees and Pensioners

5th CPC		6th CPC		7th CPC
M/Y	DA & DR %	M/Y	DA & DR %	M/Y	DA & DR %
Jan-96	0	Jan-06	0	Jan-16	0
Jul-96	4%	Jul-06	2%	Jul-16	2%(Expected)
Jan-97	8%	Jan-07	6%
Jul-97	13%	Jul-07	9%
Jan-98	16%	Jan-08	12%
Jul-98	22%	Jul-08	16%
Jan-99	32%	Jan-09	22%
Jul-99	37%	Jul-09	27%
Jan-2000	38%	Jan-10	35%
Jul-2000	41%	Jul-10	45%
Jan-01	43%	Jan-11	51%
Jul-01	45%	Jul-11	58%
Jan-02	49%	Jan-12	65%
Jul-02	52%	Jul-12	72%
Jan-03	55%	Jan-13	80%
Jul-03	59%	Jul-13	90%
Jan-04	61%	Jan-14	100%
Apr-04	11%	Jul-14	107%
Jul-04	14%	Jan-15	113%
Jan-05	17%	Jul-15	119%
Jul-05	21%	Jan-16	125%
Jan-06	24%	Jul-16	132(Expected)
Jul-06	29%
Jan-07	35%
Jul-07	41%
Jan-08	47%
Jul-09	27%
Jan-09	22%
Jul -09	73%
Jan-09	64%
Jul-10	27%
Jan-10	35%
Jul-10	73%
Jan-10	87%
Jul-10	45%
Jan-10	35%
Jul-10	103%
Jan-10	87%
Jul-11	45%
Jan-11	51%
Jul-11	103%
Jan-11	115%
Jul-11	58%
Jan-11	51%
Jul-12	58%
Jan-12	65%
Jul-12	127%
Jan-12	139%
Jul-12	72%
Jan-12	65%
Jul-12	151%
Jan-12	139%
Jul-13	72%
Jan-13	80%
Jul-13	151%
Jan-13	166%
Jul-13	90%
Jan-13	80%
Jul-13	183%
Jan-13	166%
Jul-14	90%
Jan-14	100%
Jul-14	107%
Jan-14	100%
Jul-15	107%
Jan-15	113%
Jul-15	212%
Jan-15	223%
Jul-15	119%
Jan-15	113%
Jul-15	234%
Jan-15	223%
Jul-16	119%
Jan-16	125%
Jul-16	234%
Jan-16	245%
Jul-16	255(Expected)