Sunday, 17 December 2017

Expected DA Jan 2018: Central Government Employees losing interest in Expected DA?

Expected DA Jan 2018: Central Government Employees losing interest in Expected DA?
Central Government employees losing interest in Dearness Allowance?
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 All India Consumer Price Index Number(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)
Total of
12 Months
12 Months
DA with
DA %

Via: Expected DA

7th CPC Military Brochure - Old Age Pension

7th CPC Military Brochure - Old Age Pension

Old Age Pension

The quantum of addl pension/ family pension available to the old pensioners/ family pensioners shall be continued as follows :

7th CPC Military Brochure - Old Age Pension

Note : (a) The pension Sanctioning Authorities should ensure that the date of birth and the age of a pensioner/family pensioner, are invariably indicated in the pension Payment Order to facilitate payment of additional pension by the pension Disbursing Agencies as soon as it becomes due. Dearness relief shall also be admissible on the additional pension available to old pensioners/family pensioners.

 (b) The additional pension payable to old pensioners/family pensioners of 80 years of age and above shall also be applicable to old pensioners / family pensioners of 80 years of age and above in receipt of Disability/ War Injury Element/ Liberalized Disability Element of Disability/ Liberalized Disability/ War Injury Pension also.

Auth : GoI, MoD (DESW) letter No 17(02)/2016-D(Pen/Pol) dated 04 Sep 2017.

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