Dearness Allowance (DA) of central employees has been increased by 3%. The decision to increase the DA was taken in the cabinet meeting held on Wednesday (October 16). This claim has been made in some media reports citing sources. It is expected to be officially announced at 3 pm.
After this increase before Diwali, the dearness allowance has increased from 50% to 53%. About 52 lakh central employees and 60 lakh pensioners will get the benefit. DA increases every 6 months. The increased DA will be effective from July 1. Employees will get 3 months arrears.
A benefit of Rs 330 on a basic salary of Rs 10,000
For this, fill your pay in the formula below..(Basic Pay + Grade Pay) × DA% = DA Amount.
If understood in simple language, dearness allowance is multiplied by the rate of pay which is made after adding grade pay to the basic pay. The result is called Dearness Allowance (DA). Now let's understand this with an example, suppose your basic salary is Rs. 10 thousand and grade pay is Rs. 1000 is.
Adding both, the total becomes 11 thousand rupees. In such a case, it is increased to Rs 5,830 in respect of 53% dearness allowance. Adding all your total salary will be Rs. was 16,830. Whereas in terms of 50% DA you are getting a salary of Rs 16,500. That is, after increasing the DA by 3%, there will be a profit of Rs 330 per month.
DA is given to counter inflation
Dearness Allowance is money given to government employees to maintain their standard of living despite rising inflation.
This money is available for government employees, public sector employees and pensioners. It is calculated every 6 months according to the current inflation rate 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 is given for determining the dearness allowance. (Average of last 12 months All India Consumer Price Index (AICPI) – 115.76)/115.76]×100.
Now if we talk about Dearness Allowance for people working in PSU (Public Sector Units), its calculation method is-
Inflation 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. The rate of retail inflation is based on the prices paid by ordinary consumers. It is also called Consumer Price Index (CPI).
Image Credit: (Divya-Bhaskar): Images/graphics belong to (Divya-Bhaskar).
