New Delhi, Sep 14: DA (Dearness allowance) is likely to be increased for 47 lakh central government employees and 69 lakh pensioners by 3 percentage from the existing 42% to 45% , as per the agreed formula for the purpose.
Though there has been no official statement on the same, reports are claiming that the announcement may be made amid the upcoming festive season.
It is anticipated that the DA/DR rate will rise by 3 percent from the current 42 percent to 45 percent. After the Union Cabinet meeting, which is headed over by Prime Minister Narendra Modi, the announcement will be made.
In general, the DA/DR matter is always approved by the central cabinet twice in a year.
What exactly is DA and DR?
Dearness Allowance (DA) is the cost-of-living adjustment allowance which the government pays to the employees of the public sector as well as pensioners of the same.
Dearness Relief (DR) is the same as allowance and is given to central government pensioners.
Why govt revises DA/DR?
The government usually revises the DA/DR rate every six months. This is done to compensate for the loss in purchasing power of the monthly salary/pension wealth due to inflation
How is DA calculated?
It is calculated as a percentage of the basic salary.
For Central Government employees: Dearness Allowance percent = ((Average of AICPI (Base Year 2001=100) for the past 12 months -115.76)/115.76) *100
AICPI stands for All India Consumer Price Index.
For public sector (central government) employees this formula is used:
Dearness Allowance percent = ((Average of AICPI (Base Year 2016=100) for the past 3 months -126.33)/126.33) *100.
