Archive for DA

Dearness Allowance / Dearness Relief Rate Tables of 5th & 6 CPC

DA Rates – 5th CPC

Date
From which Payable

Rate

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1st Jul 2009

73%

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1st Jan 2009

64%

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1st Jul 2008

54%

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1st Jan 2008

47%

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1st Jan 2007 &
1st Jul 2007

 

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1st Jul 2007

41%

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1st Jan 2007

35%

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1st Jul 2006

29%

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1st Jan 2006

24%

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1st Jul 2005

21%

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1st Jan 2005

17%

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1st Jul 2004

14%

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1st April 2004 (DA Merger)

11%

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1st Jan 2004

61%

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1st Jul 2003

59%

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1st Jan 2003

55%

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1st Jul 2002

52%

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1st Jan 2002

49%

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1st Jul 2001

45%

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1st Jan 2001

43%

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1st Jul 2000

41%

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1st Jan 2000

38%

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1st Jul 1999

37%

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1st Jan 1999

32%

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1st Jul 1998

22%

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1st Jan 1998

16%

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1st Jul 1997

13%

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1st Jan 1997

8%

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1st Jul 1996

4%

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1st Jan 1996

DA Rates -  6th CPC

Date
From which Payable

Rate

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1st Jul 2009

27%

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1st Jan 2009

22%

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1st Jul 2008

16%

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1st Jan 2008

12%

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1st Jul 2007

9%

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1st Jan 2007

6%

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1st Jul 2006

2%

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1st Jan 2006

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Central employees may get at least 8% D.A. hike from January 2010

As per AICPI assumed 35% D.A. to Central employees may get from January 2010

As per the figures available from Labour Bureau, Government of India it can be assumed that minimum of 8% DA hike is expected from January 2010, totalling 35% from current 27%. This is calculated assuming that the All India Consumer Price Index (AICPI) remains unchanged for November and December, which are yet to be announced.

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

153

1776

148

27.85

27

July

2009

160

1793

August

2009

162

1812

Sep

2009

163

1829

Oct

2009

165

1846

Nov

2009

165 [Not available now, Assumption]

1863

Dec

2009

165 [Not available now, Assumption]

1881

153.75

35.40

35 [Calculated]

Source : Labour Bureau [Upto the month of Oct’09]

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5% DA declared to all Central Govt Employees, Now From 01-07-2009 DA will be 27%

Release of additional instalment of dearness allowance to Central Government employees and dearness relief to Pensioners, due from 1.7.2009

 

The Cabinet has decided to release an additional instalment of Dearness Allowance (DA) to Central government employees and Dearness Relief (DR) to pensioners w.e.f. 1.7.2009 representing an increase of 5% over the existing rate of 22% of the Basic Pay/Pension, to compensate for price rise. The increase is in accordance with the accepted formula, which is based on the recommendations of the 6th Central Pay Commission. The combined impact on the exchequer on account of both dearness allowance and dearness relief would be of the order of Rs.4355.35 crore in a full year and Rs.2903.55 crore in the financial year 2009-2010 (for a period of 8 months from July, 2009 to February, 2010).

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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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6% hike in DA for central Govt employees

In a decision that will have a total financial implication to the tune of Rs 6,020 crore over a 14 month period starting January 1, 2009, the Union Cabinet on Thursday approved a six percent hike in the Dearness Allowance (DA) given to Central Government employees and pensioners.

The decision will benefit 41 lakh Government employees and another 38 lakh pensioners. Although revision of DA is done every six months, the quantum of the hike is being viewed as another poll sop doled out by the government with an eye on the forthcoming general elections.

Following Thursday’s decision. the DA component in the salaries and pensions will increase from the 16 to 22 per cent. While the financial implication of the move on the salary component will be Rs 4,100 crore, the implication on the pension component will be around Rs 1,920 crore.

Union Home Minister P Chidambaram said that the hike will be effective from January 1 and will be payable from March 1 this year.

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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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Expected DA Increase – 6%

Expected DA for Central Government Employees from 1.1.2009 – 22%

All India Consumer Price Index Number for Industrial Workers (CPI-IW) on base 2001=100 for the month of November, 2008 remained stationary at 148 (one hundred and forty-eight).

During November, 2008, the index recorded maximum increase of 5 points each in Quilon and Madurai centres, 3 points each in Mysore, Ernakulam, Bhilwara and Coonoor centres, 2 points in 13 centres and 1 point in 14 centres. The index decreased by 1 point in 19 centres and 2 points each in Jalandhar, Nasik, Bhavnagar, Siliguri, Asansol and Howrah centres, while in remaining 20 centres the index remained stationary.

The maximum increase of 5 points in Quilon centre is mainly due to Fish, Fresh Vegetable Items and Washing Soap etc., while that in Madurai centre is mainly due to Rice and Vegetable Items. The increase of 3 points each in Mysore, Ernakulam, Bhilwara and Coonoor centres is due to Rice, Onion, Fish Fresh, Vegetable Items, Tea Readymade, Toilet Soap etc. While the decrease of 2 points each in Jalandhar, Nasik, Bhavnagar, Siliguri, Asansol and Howrah centres is due to decrease in the prices of Vegetable items, Mustard Oil, Groundnut Oil etc.

The point to point rate of inflation for the month of November, 2008 remained constant 10.45% at the level of October, 2008.
The CPI-IW for December, 2008 will be released on the last working day of the next month, i.e. 30th January, 2009.

All India Consumer Price Index Industrial Workers BASE YEAR 2001 = 100

Month

Base year 2001=100

Total of 12 Months

12 Month Average

% Increase over 115.76 for DA

Nov2007

134

1562

130.17

12.45

Dec2007

134

1569

130.75

12.95

Jan-2008

134

1576

131.33

13.45

Feb-2008

135

1583

131.92

13.96

Mar2008

137

1593

132.75

14.68

Apr-2008

138

1603

133.58

15.39

May2008

139

1613

134.42

16.12

Jun-2008

140

1623

135.25

16.84

Jul-2008

143

1634

136.17

17.63

Aug2008

145

1646

137.17

18.50

Sep-2008

146

1659

138.25

19.43

Oct-2008

148

1673

139.42

20.44

Expected Dearness Allowance for Central Government Employees from 1.1.2009 – 22%.

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