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DA from July 2015 increased to 119% – Cabinet approves 6% DA increase

DA from July 2015 increased to 119% Cabinet approval given for allowing 6% increase in Dearness Allowance payable to Central Government Employees including Railway Employees, Defence Personnel and Pensioners of these organisations

Cabinet approves DA from July 2015 for Central Government EmployeesAs expected Union Cabinet approved 6% increase in Dearness Allowance with effect from 1st July 2015 applicable to Central government Employees including Railway Employees, , Defence Personnel and Pensioners of these organisations.

In as much 1 crore Govt Employees and Pensioners (48 lakh government employees and 55 lakh pensioners) would be benefited by this decision of Cabinet to increase DA from July 2015.

As we are all aware Dearness Allowance of Central Government Employees is based on All India Consumer Price Index (with base 2001=100)

All India Consumer Price Indices for the months from July2014 to June 2015, which are required to determine Dearness Allowance are follows

Month Actual AICPI-IW
Jul-2014 252
Aug-2014 253
Sep-2014 253
Oct-2014 253
Nov-2014 253
Dec- 2014 253
Jan-2015 254
Feb-2015 253
Mar-2015 254
Apr-2015 256
May-2015 258
Jun-2015 261


DA from Jul 2015= [(252+253+253+253+253+253+254+253+254+256+258+261)-115.76]*100/115.76
= 119% (6% increase in DA from July 2015)

Check this Dearness Allowance Calculating tool

The calculation method for determining DA for Central Government Employees was approved by Govt as recommended by 6th Pay Commission.

While 7th Pay Commission has almost completed its process of reviewing Central Government Employees, Railway Employees and Defence Personnel Pay and allowances, Dearness Allowance from July 2015 approved by Union Cabinet now and DA from January 20016, would gain much significance as 7th Pay Commission Pay which is effective from 1st January 2016, would be determined after merging DA as on January 2016 with existing pay and grade pay.

Click here to estimate your 7th Pay Commission Pay and allowances

Source: Times of India


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