“The Central cabinet is likely to
give its approval to a two percent Dearness Allowance hike, with effect
from January 2017, to the Central Government employees.”
The cabinet is, at its next meeting, expected to give its approval to
the additional Dearness Allowance of two percent to Central Government
employees and pensioners, to come into effect from January 1, 2017
onwards.
The 2% Additional Dearness Allowance hike will be calculated on the
basis of the basic pay as recommended by the Seventh Pay Commission, and
will be given to more than 47 lakh Central Government employees and 53
lakh pensioners, of which 14 lakh employees and 18 lakh pensioners are
from the defence forces.
The Dearness Allowance, issued once every six months, is given to
Central Government employees and pensioners to help them manage the
increase in prices of essential commodities. The Dearness Allowance is
calculated on the basis of the Consumer Price Index Numbers for
Industrial Workers on Base Year 2001=100.
The percentage for January 2017 was arrived at by recording the prices
of essential commodities at 78 towns and cities across the country, for
the months of July 2016 till December 2016. Based on the data and
calculation, the percentage may be fixed at 4.95 percent. But, according
to the method prescribed by the Pay Commission, the decimal numbers are
ignored. Hence, a Dearness Allowance of four percent will be issued
with effect from January 1, 2017 onwards.
The table is given below for more information to arrive the percentage calculation.
| M/Y | CPI(IW)
BY 2001=100
| Total 12 Months | 12 Monthly Average | % Increase Over 261.42 for DA |
| Jul -16 | 280 | 3245 | 270.42 | 3.44 |
| Aug – 16 | 278 | 3259 | 271.58 | 3.88 |
| Sep – 16 | 277 | 3270 | 272.50 | 4.23 |
| Oct – 16 | 278 | 3279 | 273.25 | 4.53 |
| Nov – 16 | 277 | 3286 | 273.83 | 4.75 |
| Dec – 16 | 275 | 3292 | 274.33 | 4.95 |
