Archive for 6% DA

5% Dearness Allowance is expected for Central Govt. Employees w.e.f. 1st July 2009

5% Dearness Allowance is expected for Central Govt. Employees w.e.f. 1st July 2009

Central Govt. employees and pensioners may expect a hefty rise of 5% in D.A. with effect from today, the 1st July 2009. According to the statistics of Labour Bureau, Govt. of India, All India Consumer Price Index No. has climbed up to 151 points in May 2009 in comparison to 147 in December 2008. [See the chart below.] 
With this expected rise, the total Dearness Allowance will be 27% w.e.f. 01.07.2009. It may be mentioned that the rise in Dearness Allowance effects Transport Allowance also as per the Sixth Pay Commission for the Central Govt. Employees. 
Calculation is based on All India Consumer Price Index Number for Industrial Worker based on [Base Year 2001 = 100] 

Month

Year

Base Year 
2001=100

Total

Average

App. DA

DA

May

2008

139

1613

June

2008

140

1623

135.25

16.84

16

July

2008

143

1634

August

2008

143

1634

Sep

2008

146

1659

Oct

2008

148

1673

Nov

2008

148

1687

Dec

2008

147

1700

141.67

22.38

22

Jan

2009

148

1714

Feb

2009

149

1728

Mar

2009

148

1739

Apr

2009

150

1751

May

2009

151

1763

June

2009

27

5% Dearness Allowance is expected for Central Govt. Employees w.e.f. 1st July 2009

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Govt gives 6% additional DA for its employees

The Union government approved a six per cent increase in Dearness Allowance to its over 80 lakh employees and pensioners, although it would pinch its pocket by Rs 6,020 crore in the 14 months till February 2010.

The move would, however, put more money in the hands of the salaried class whose spending may boost the economy.

The employees and pensioners would get the DA with effect from January 2009 and payable with their salaries starting next month, as per a decision cleared by the Cabinet Committee on Economic Affairs (CCEA) in New Delhi.

It was only in September 2008 that government servants got higher salaries after the Centre implemented the sixth Pay Commission’s recommendations with some modifications.

The revised DA would be 22 per cent against 16 per cent at present, Home Minister P Chidambaram told reporters in New Delhi on Thursday after the CCEA meeting.

The combined burden of the increased DA to the working and retired employees will be Rs 6,020 crore in 14 months from January 2009 to February 2010.

However, the exchequer will take a hit of Rs 5,159 crore for a full year, he said.

The decision to increase DA was taken because of the rise in the consumer price index for industrial workers.

DA is revised twice a year, from 1st January and 1st July, payable in salaries of 1st March and 1st September, respectively.

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