Expected da from July 2011

Expected DA from July 2011

We feel features, expectations and calculations are on the forefront for most of the central government employees regarding the additional Dearness Allowance from July, 2011 to be announced soon.

There will be no change in the 7% DA unless a huge change takes place in the month of June AICPIN (i.e.if the AICPIN falls below 180 points or increase above 195, a change of DA can take place, but chances are very remote.) AICPIN now stands at 187.

Surprisingly, some employees are eager to know if the DA crosses 100%, it will merge with the basic pay or not.

There is no such recommendations said in the 6th CPC.The allowances only will be increased by another 25%, every time the DA crosses 50%.

As of now, the important increase in the allowance is Children Education Allowance and Hostel Subsidy. It was increased from Rs.12000 to Rs.15000 from 1.1.2011. This will be increase upto Rs.18750 after the Da crosses 100% and some other allowances also will be enhanced by 25% from the existing rates.

Assumption are that the DA will touch 100% in the next three years. Before the 7th CPC, which will be from 2016, the DA surely crosses 100%.

The DA was merged with the basic pay as happened in the year 2004, the 5th CPC had recommended that DA should be converted into Dearness pay each time the CPI increase by 50% over the base index used by the Pay Commission.

For your information :-
Have a look the order published from Finance Ministry on 1st March, 2004 regarding the Merger of 50% of DA and DR with basic pay / pension to Central government employees / pensioners w.e.f.01.04.2004.

F.No. 105/1/2004-IC
Government of India
Ministry of Finance
Department of Expenditure

New Delhi, dated the 1st March, 2004


Subject: Merger of 50% of Dearness Allowance/Dearness Relief with basic pay/pension to Central     Government employees/pensioners w.e.f. 01/04/2004.

The Fifth CPC in para 105.11 of their report had recommended that DA should be converted into Dearness Pay each time the CPI increase by 50% over the base index used by the Pay Commission.

2. This recommendation of Fifth CPC has been considered and the President is pleased to decide that, with effect from 01/04/2004, DA equal to 50% of the existing basic pay shall be merged with the basic pay and shown distinctly as Dearness Pay (DP) which would be counted for purposes like payment of allowances, transfer grant, retirement benefits, contribution to GPF, Licence fee, monthly contribution to CGHS, various advances, etc. The entitlements of LTC, TA/DA while on tour and transfer and government accommodation shall, however , continue to be governed on the basis of the basic pay alone without taking into account Dearness Pay. In case of existing pensioners, Dearness Relief equal to 50% of the present pension will, w.e.f. 01/04/2004, be merged with pension and shown distinctly as Dearness Pension. Dearness Allowance/Dearness Relief converted into Dearness Pay/Dearness Pension respectively would be deducted from the existing rate of Dearness Allowance/Dearness Relief.

3. To ensure that pensioners retiring between 01.04.2004 to 31.01.2005 do not face any loss in fixation of pension, as a special dispensation in their case, DA equal to 50% of the basic pay would be treated as basic pay for purposes of computation of pension in respect of basic pay received by them prior to 01.04.2004. Consequently, element of dearness pension will exist only for pensioners retired/retiring from Government of India up to 31.03.2004.

4. Insofar as the persons serving in the Indian Audit & Accounts Department are concerned, these orders issue after consultation with the Comptroller & Auditor General of India.

Joint Secretary to Government of India


prakash said…
it is really strange to increase the salory and d.a for employees only while 6th pay commission has increased all this maximum more than assumption ,what for others indian who are also citizens of india and doing private job or jobless ? in fact govt. must ponder for all peoples of india because inflation affect all indian not only for govt employees who are mostly 1.50 crore only rest are all below bpl and some different but not getting as central govt employees ,indeed central govt must do some thing for them .and further govt must consider the age reduce of retirement as maximum young persons are jobless after obtained many degrees with work hard.
Anonymous said…
Govt. covered all section of people.But it is after long time observation the people who are serving for the nation are depriving like anything..so for better working atmosphere and better activities Govt. try its best level..for that no such comparison is expected rather it is hope for the best with full of confidence in present Govt.for more healthy situation of our nation.
Ravindran said…
Dear Prakash,

The Government doesn't revise wages or increase DA just because it likes the employees more than the common people. It is because the Government employees are organised into Associations and trade unions and they fight for their cause. You are absolutely correct when you say that the commmon man is left far behind when compared to Government employees. You must understand that the Governments stand for the corporates and big buisness. The Government is a great film acted by the Politicians and directed by the Corporate Kings.

Your discontentment is agreeable and the Government employees too are responsible for this state of affairs because they just worry about themselves and do not care about the other sections of the society who are exploited and suppressed.

Anyhow, the goverment employees are not the gainers, they just get a modest salary, which is by no account exhorbitant but surely better than that of many others.

So friend, we have to be together, to fight against the Government for the benefit of the whole working class and stop complaining about each other.

And the Government employees, beware of a public backlash against us unless we stand together with the common people.

Ordnance Factory Tiruchirapalli
ADK said…
Dear Mr. oprakash,
It is incorrect to compare Govt. servants with Pvt. In private sector, every employee gets at least 15% rise in appriasal pay per year. I have examples in my own family. In anout 14 years (time for implemenation of pay commissions) you can calculate what is the rise they get!!! Similarly they get bonus (without exception everybody incouding Managing Directors) which is totally incomparable with Govt. Employees. So don't be complaining about the DA to Govt. employees!! And understand that it is well acknowledged that this compensation is manuplated and not the real one. (Accepted by FM in Parliament)
shashi said…
i am working in ordnance factory,medak.
actually i became mcm grade in 2000 may,and i completed same grade in 11 years sevice,now our management not counting the seniority from 2000 may, they counting it from 2006 jan,according to this my next macp is 2016,but my service is since 2000 may in mcm grade,so i loss the 6 years financial benifit, and my total service is 23 years as examiner,is this is right…….plz reply me as soon as possible....
Anonymous said…
Mr. Prakash,

Your comments are far from facts.6th pay commission has given a rise of 20-30 % after 10 years, so a meagre annual rise of hardly 2-3% (in comparision to private counterpart's min 20% hike per yoy) annually.can u deny the fact that cost of living in the same period has icreased at leat by 300%. what ever good you are seeing around today somewhere government employees have put in their best efforts either in creating the best infrastructure or to prepare a platform. Govt. employees are best in talent in comparision to their counterparts in corporate sector.The kind of restriction put by archiac rules on govt employees it will be difficult to be appreciated by you, still govt employee deliver. I know many people who have quit govt service and have joined corporate share that they have 75%(approx.) workload and at least 300-400% higher salary.
Corporate enters only at those places where they have high ROI at other places to make your and my life govt has to work hard and in turn govt. employees.In order to further improve the life of people we ultimately need motivated govt. employees. Take home salary is one of the major contributors to improve this motivation.
Anonymous said…
for all private employees. yearly increment is only 3% of the total salary. now u still want the same. everyone need goodies no body want the badds
shukla said…
the private employees are paid less in the form of basic pay, but r paid heavily in the form of allowances, thus they earns more than a Class IV employee of Government.
shukla said…
Government declares DA on the calculation of rise in prices of wholesale market but how many employees purchase or get the commodities from wholesale market and it is also reality that a 1% increase in wholesale price raises retail prices upto 4-5%, so gvt. should declare DA on the basis of rise in retail price instead of wholesale price.

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