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) BY2001=100
|
Total of 12 Months
|
12 Months Average
|
DA with Decimal
|
DA %
|
Jan-16
|
269
|
3152
|
262.67
|
0.48
| |
Feb-16
|
267
|
3166
|
263.83
|
0.92
| |
Mar-16
|
268
|
3180
|
265
|
1.37
| |
Apr-16
|
271
|
3195
|
266.25
|
1.85
| |
May-16
|
275
|
3212
|
267.67
|
2.39
| |
Jun-16
|
277
|
3228
|
269
|
2.9
|
2%
|
Jul-16
|
280
|
3245
|
270.42
|
3.44
| |
Aug-16
|
278
|
3259
|
271.58
|
3.89
| |
Sep-16
|
277
|
3270
|
272.05
|
4.24
| |
Oct-16
|
278
|
3279
|
273.25
|
4.53
| |
Nov-16
|
277
|
3286
|
273.83
|
4.75
| |
Dec-16
|
275
|
3292
|
274.33
|
4.94
|
4%
|
Jan-17
|
274
|
3297
|
274.75
|
5.1
| |
Feb-17
|
274
|
3304
|
275.33
|
5.32
| |
Mar-17
|
275
|
3311
|
275.92
|
5.55
| |
Apr-17
|
277
|
3317
|
276.42
|
5.74
| |
May-17
|
278
|
3320
|
276.67
|
5.83
| |
Jun-17
|
280
|
3323
|
276.91
|
5.93
|
5%
|
Jul-17
|
285
|
3328
|
277.33
|
6.09
| |
Aug-17
|
285
|
3335
|
277.92
|
6.31
| |
Sep-17
|
285
|
3343
|
278.58
|
6.56
| |
Oct-17
|
287
|
3352
|
279.33
|
6.85
| |
Nov-17
| |||||
Dec-17
|