8% Dearness Allowance for Central staff declared

“The Union Cabinet today decided to release an additional instalment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners with effect from 1.1.2010 representing an increase of 8% over the existing rate of 27% 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 Sixth 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.6969.36 crore per annum and Rs.8131.20 crore in the financial year 2010-2011 (for a period of 14 months from January, 2010 to February, 2011).”

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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).

Source: PIB Press Release

5% DA Expected

The information given below is only opinion. Please dont take it for authenticated one.

As per the available stastics, a 5% additional DA is expected to be announced w.e.f July 2009. This will make DA to be 27% from 1 July 2009. The calculation is based on All India Consumer Price Index Number for Industrial Workers (CPI-IW) on base 2001=100

Source: Gconnect

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