Good news for central government employees, Centre is likely to announce about the increase in dearness allowance (DA)

In some great news for central government employees, Centre is likely to make an announcement about the increase in dearness allowance (DA) for its employees on September 4, according to sources, which believe that the proposed Union Cabinet meeting on Wednesday would do so. The cabinet meeting may announce the DA increase for the central government employees, besides discussing many other issues, including Jammu and Kashmir. Notably, In case of 5 percent increase, the salary of Central government employees will jump by anywhere between Rs 900 to Rs 12500 depending on level. Something that will come as welcome news for all concerned.

The 5 per cent increase in dearness allowance is expected in the wake of rise in inflation, according to the AICPI figures for months between January and June 2019. Harishankar Tiwari, former president of AG Office Brotherhood, Prayagraj, told Zee Business Online that the DA for June stood at 17.09% as compared to 13.39% in January. The December figures were lower, the reason, the government increased the DA by 3%.

Maximum DA hike in 3 years

When the 7th Pay Commission recommendations were implemented in 2016, the government had abolished dearness allowance, but it was added and then every six months onwards, the government increases it as per the AICPI index, which has increased the most from January to June 2019. With DA increasing by 5 percent, this time central employees are expected to get the maximum hike in 3 years. Currently, the DA for government employees stands at 12 percent.

7th Pay Commission: Dearness Allowance calculation

Month     AICPI    DA%
Jan         307       13.39
Feb        307        14.02
March    309        14.73
April       312        15.49
May       314        16.29
June      316        17.09
July       319        17.67

According to Harishankar Tiwari, the Dearness Allowance is calculated in the following way:

In June 2019: AICPI -316

Total 12 months: 3673 (301 + 301 + 301 + 302 + 302 + 301 + 307 + 307 + 309 + 312 + 314 + 316) / 12) – (261.4) x 100 / 261.4)

Estimated DA: 17%.

Source: zeebiz