It is becoming very obvious these days
that the Central Government employees and pensioners are fast losing
interest in Dearness Allowance.
Dearness Allowance is given to the
Central Government employees once every six months, in order to help
them maintain their lifestyle against the rising prices. Fluctuations in
the prices of 392 essential items are recorded regularly at 78 various
locations and their data is tabulated once every month to calculate the
AICPIN, which is then released by the Centre. Dearness Allowance is thus
calculated.
For eight years now, we have been
calculating the Dearness Allowance in advance and releasing the numbers.
This is why we are able to sense an acute loss of interest among the
Central Government employees in recent times to know their next and
expected Dearness Allowance.
Dearness Allowance is calculated with
the employee’s basic salary. For example, a 5 percent Dearness Allowance
for an employee who draws a basic salary of Rs. 7000 per month, will
translate into Rs. 350. An employee drawing basic salary of Rs. 20,000
will get an additional Rs. 200 if 1 percent Dearness Allowance is
sanctioned.
All the Central Government employees,
defence personnel and pensioners are now being paid as per the
recommendations of the Seventh Pay Commission, from January 2016
onwards. The Seventh Pay Commission had recommended that no changes
shall be made in the Dearness Allowance calculations and the method
adopted by the Sixth Pay Commission continues to be followed. The centre
too had accepted the recommendations.
Under the Sixth Pay Commission method, the Dearness allowance
had increased by 125 percent in the past ten years, from January 2006
to December 2015. It is worth mentioning that at least thrice, a
Dearness Allowance of 10 percent was paid to the employees. The table
below shows the Dearness Allowance that was paid once every six months.
The loss of interest among the employees
probably has something to do with the fact that the increase in
Dearness Allowance has only been marginal ever since the Seventh Pay
Commission was implemented.
There was no Dearness Allowance for the
first six months, January to June 2016. Dearness Allowance of only two
percent was given for July to December 2016. It looked as if something
was wrong with the calculations, right from the start, but the employees
thought that things will improve with time. The Dearness Allowance for
January to June 2017 was a mere one percent, which came as a rude shock
to all.
The centre claimed that it was because they have the prices under control.
So, what is the Dearness Allowance for the second term of 2017, July to December 2017, likely to be?
This time too, it is not expected to exceed two percent.
We expect the Dearness Allowance to be 7% with effect from January 2018.
DA Table from 1.1.2016 as per 7th CPC
|
Month/Year
|
CPI(IW) BY2001=100
|
Total of 12 Months
|
12 Months Average
|
DA with Decimal
|
DA %
|
|
Jan-16
|
269
|
3152
|
262.67
|
0.48
|
|
|
Feb-16
|
267
|
3166
|
263.83
|
0.92
|
|
|
Mar-16
|
268
|
3180
|
265
|
1.37
|
|
|
Apr-16
|
271
|
3195
|
266.25
|
1.85
|
|
|
May-16
|
275
|
3212
|
267.67
|
2.39
|
|
|
Jun-16
|
277
|
3228
|
269
|
2.9
|
2%
|
|
Jul-16
|
280
|
3245
|
270.42
|
3.44
|
|
|
Aug-16
|
278
|
3259
|
271.58
|
3.89
|
|
|
Sep-16
|
277
|
3270
|
272.05
|
4.24
|
|
|
Oct-16
|
278
|
3279
|
273.25
|
4.53
|
|
|
Nov-16
|
277
|
3286
|
273.83
|
4.75
|
|
|
Dec-16
|
275
|
3292
|
274.33
|
4.94
|
4%
|
|
Jan-17
|
274
|
3297
|
274.75
|
5.1
|
|
|
Feb-17
|
274
|
3304
|
275.33
|
5.32
|
|
|
Mar-17
|
275
|
3311
|
275.92
|
5.55
|
|
|
Apr-17
|
277
|
3317
|
276.42
|
5.74
|
|
|
May-17
|
278
|
3320
|
276.67
|
5.83
|
|
|
Jun-17
|
280
|
3323
|
276.91
|
5.93
|
5%
|
|
Jul-17
|
285
|
3328
|
277.33
|
6.09
|
|
|
Aug-17
|
285
|
3335
|
277.92
|
6.31
|
|
|
Sep-17
|
285
|
3343
|
278.58
|
6.56
|
|
|
Oct-17
|
287
|
3352
|
279.33
|
6.85
|
|
|
Nov-17
|
|
|
|
|
|
|
Dec-17
|
|
|
|
|
|
