Increase in DA to 72% with effect from July-2012 – Cabinet likely to approve tomorrow

Increase in DA to 72% with effect from July-2012 – Cabinet likely to approve tomorrow

As per the information pouring from all quarters, Cabinet is likely to approve the increase in the Dearness Allowance of more than 80 lakh Central Government Employees and Pensioners tomorrow.

The increase in DA from July 2012 is estimated at 7%. Consequently, total Dearness Allowance from July 2012 will be 72%. This increase in DA is due to increase in the All India Consumer Price Index for Industrial Workers (AICPI – IW) for the months from July 2011 to June 2011.

Click here to read about the calculation details for eligible Dearness Allowance from July 2012

Use this DA Calculator for to estimate DA with effect from July 2012

Economic Times reports as follows

The proposal to increase the DA from 65 per cent to 72 per cent is likely to be taken up by the Union Cabinet tomorrow, sources said.

The decision, which would benefit about 50 lakh of employees and 30 lakh pensioners of the central government, comes in the backdrop of government increasing the diesel price by Rs 5 per litre and retail inflation crossing the double digit mark.

The hike, once approved, will be effective from July 1, 2012, and the employees would be entitled for arrears from this date.

The government had increased DA last in March this year from 58 per cent to 65 per cent, which was effective from January 1, 2012.

The government periodically hikes the DA, which is linked to consumer price index for industrial workers. The consumer price index(CPI) based on movement in retail prices, soared to 10.03 per cent in August, from 9.86 per cent in July.