New Delhi1 hour ago
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About 52 lakh central employees and 60 lakh pensioners will benefit from the increased DA.
The Dearness Allowance (DA) received by central employees has been increased by 3%. The decision on DA increase was taken in the cabinet meeting held on Wednesday (16 October). This claim has been made in some media reports quoting sources. Its official announcement is expected to be made at 3 pm.
After this increase before Diwali, dearness allowance has increased from 50% to 53%. About 52 lakh central employees and 60 lakh pensioners will benefit from this. DA increases every 6 months. The increased DA will be applicable from July 1. Employees will get 3 months arrears.
Benefit of Rs 330 on basic salary of Rs 10,000
For this, fill your salary in the formula given below..(Basic Pay + Grade Pay) × DA% = DA Amount.
If understood in simple language, the rate of dearness allowance is multiplied in the salary which is formed after adding grade salary to the basic salary. The result that comes is called Dearness Allowance (DA). Now let us understand this with an example, suppose your basic salary is Rs 10 thousand and grade pay is Rs 1000.
By adding both the total became Rs 11 thousand. In such a situation, after increasing it in terms of 53% dearness allowance, it becomes Rs 5,830. Adding all, your total salary was Rs 16,830. Whereas in terms of 50% DA, you are getting a salary of Rs 16,500. That means after increasing DA by 3%, there will be a benefit of Rs 330 every month.
DA is given to deal with inflation
Dearness Allowance is money that is given to maintain the standard of living of government employees despite rising inflation.
This money is available to government employees, public sector employees and pensioners. Its calculation is done every 6 months according to the current inflation of the country.
It is calculated according to the basic pay of the employees based on the respective pay scale. Dearness allowance may be different for employees in urban, semi-urban or rural areas.
How is dearness allowance calculated?
A formula has been given for determining dearness allowance. (Average of All India Consumer Price Index (AICPI) of last 12 months – 115.76)/115.76]×100.
Now if we talk about dearness allowance for people working in PSU (Public Sector Units), then the method of its calculation is-
Dearness Allowance Percentage= (Average of Consumer Price Index of last 3 months (Base Year 2001=100)-126.33) x 100
What is All India Consumer Price Index?
There are two types of inflation in India. One is retail and the other is wholesale inflation. Retail inflation rate is based on the prices paid by ordinary consumers. It is also called Consumer Price Index (CPI).
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