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Dearness allowance

Cost-of-living Adjustment in India

Cost-of-living Adjustment in India

|325 |328 | | |} The DA Rate for Industrial Workers (since 1 January 2007 with Base year 2001=100) for 3rd Quarter (Oct-Dec), 2015 has been declared as 107.9% and that of 4th Quarter (Jan-Mar), 2016 is 112.40%.

The 5th Pay Commission recommendations were implemented since 1 January 1996 and consequently DA rate with effective from 1 January 1996 became 0. Further in 1994 Central Government merged 50% of the Dearness Allowance (DA) with the basic pay with effective from 1 April 2004 and the Dearness Allowance continued to be calculated with reference to the All IndiaConsumer Price Index for Industrial Workers (AICPI-IW) average as on 1 January 1996 of 306.33 without changing the index base consequent to the merger. Accordingly, Dearness Allowance (DA) as mentioned in table below were sanctioned from 1 July 2004 till 1 July 2007.

Year199619961997199719981998199919992000200020012001200220022003200320042004200520052006200620072007
MonthJanJulyJanJulyJanJulyJanJulyJanJulyJanJulyJanJulyJanJulyJanJulyJanJulyJanJulyJanJuly
DA %048131622323738414345495255596164677174798591
DA% after 50% merger in 1.3.2004-----------------14172124293541

DA rate as applicable after implementation of 6th Pay Commission recommendations with effective from 1 January 2006 is shown in table below :-

Year20062006'07'07'08'08'09'0920102010'11'11'12'12'13'13'14'14'15'15'16'16'17'17'18'18'19'19
MonthJanJulyJanJulJanJulJanJulJanJulJanJulJanJulJanJulJanJulJanJulJanJulJanJulJanJulJanJul
DA %0269121622273545515865728090100107113119125132136139142148154164

DA rate as applicable after implementation of 7th Pay Commission recommendations with effective from 1 January 2016 is shown in table below :-

Year201620162017201720182018201920192020202020212021202220222023202320242024202520252026
MonthJanJulyJanJulyJanJulyJanJulyJanJulyJanJulyJanJulyJanJulyJanJulyJanJulyJan
DA %02457912url=http://www.staffnews.in/2019/07/confirm-da-dr-from-july-2019-5-percent-increase.htmltitle=Confirm! DA/DR from July, 2019: 5% increase in 7th CPC DA @17% and 10% increase in 6th CPC DA @ 164%last=Kumarifirst=Kiranwebsite=Central Government Employee News and Toolsdate=31 July 2019access-date=2019-08-01}}1717173134date=October 18, 2023title=Cabinet approves 4% hike in Dearness Allowanceurl=https://www.pib.gov.in/PressReleasePage.aspx?PRID=1968725access-date=2023-10-18website=Press Information Bureau (PIB)language=en}}title=Union Cabinet clears 4% dearness allowance hike from Jan 2023url=https://www.staffcorner.com/view.html?id=6254983913668608access-date=2023-03-24website=Staffcorner.comlanguage=en}}4650535558

Print media workers

For print media workers the Government of India has notified a DA Formula in the Gazette No 2532(E) of 11 November 2011, as recommended by the Majithia Wage Board for Journalists and Non-Journalists. The said Gazette notified formula was subsequently upheld by the Supreme Court of India by its judgment made on 7 February 2014. The Supreme Court of India upheld the recommendations as 'revised and determined' by Justice (retd) Majithia. While 115.76 is the Base and Divisor for Central Government staff, for employees coming under Majithia Wage Board 167 had been recommended as Base and Divisor. The said 167 is the 12-month average of 1 July 2009 to 30 June 2010.

The average for the current DA period January to December 2017 is 274, which is the 12-month average AICPI-IW of 1 January 2016 to 31 December 2016. The DA calculation for Jan 2017 to June 2017 is 274 minus 167 * Basic Pay and the result divided by 167. Total points 107.

7th Pay Commission

Dearness allowance rate applicable after implementation of 7th Pay Commission recommendations with effective from 1 January 2016 as shown in above table. Accordingly the Nodal Authority Department of Expenditure, Ministry of Finance has issued the Office Memorandum as shown below:-

Year20162016201720172018201820192019202020202021202120222022202320232024202420252025
MonthJanJulyJanJulyJanJulyJanJulyJanJulyJanJulyJanJulyJanJulyJanJulyJanJuly
DA %0245791217171717283438424650535558

Pensioners

Both pensioners and their families are granted DA and this continues following reemployment with the Government of India or State Governments, a public sector undertaking, autonomous bodies or a local body; that is, DA is allowed in addition to a recipient's fixed pay or "time scale". In other cases of reemployment, access to DA is subject to the limit of emoluments last drawn.

DA is not allowed during a pensioner's time overseas if employment is undertaken. It remains accessible to overseas pensioners whilst the recipient is not employed.

Since 1 October 1984, pensioners are paid DA at a certain percentage of basic pension. This is calculated on the original pension without commutation. Since 1 July 1986 the percentage has been revised every six months based on the cost of living index.

References

DA Calculator for PSU employees DA Calculator for CG employees

Time Interval for revision of dearness allowance

Confirm! DA/DR from July, 2019: 5% increase in 7th CPC DA @17% and 10% increase in 6th CPC DA @ 164%

References

  1. ashish_pilania_1. (2012). "Dearness Allowance". Scribd Inc.
  2. "18".
  3. "Archived copy".
  4. "Consumer Price Index-IW base year revised from 2001 to 2016".
  5. "New DA calculation formula as per the AI CPI-IW series with base 2016".
  6. "Statistical Data for Labour".
  7. "Index Numbers Page".
  8. (30 June 2015). "119% DA-DR from July, 2015 confirmed after 2 points increase in May, 2015 AICPIN | Central Govt Employees News - 7th Pay Commission - Staff News".
  9. "Archived copy".
  10. "Archived copy".
  11. "Archived copy".
  12. "Archived copy".
  13. "Archived copy".
  14. "Archived copy".
  15. [http://labourbureaunew.gov.in/All_India_gp_subgp_indices_Dec_2016.pdf India GP Indices]labourbureaunew.gov.in December 2016 {{Webarchive. link. (2 April 2017)
  16. [http://labourbureaunew.gov.in/All_India_gp_subgp_indices_Feb_2017.pdf India GP Indices]labourbureaunew.gov.in February 2017 {{Webarchive. link. (1 April 2017)
  17. [http://labourbureaunew.gov.in/MIL_CPI_IW_JUN_2017_EH.pdf Data June 2017]labourbureaunew.gov.in {{Webarchive. link. (23 August 2017)
  18. [http://labourbureaunew.gov.in/MIL_CPI_IW_JUL_2017_EH.pdf Data July 2017]labourbureaunew.gov.in {{Webarchive. link. (1 September 2017)
  19. [http://labourbureaunew.gov.in/MIL_CPI_IW_AUG_2017_EH.pdf Data August 2017]labourbureaunew.gov.in {{Webarchive. link. (29 September 2017)
  20. (2017-09-30). "StaffToday - CG Employee News, Rules, O.M & Notification Expected DA from January 2018 - Aicpin for the month of August 2017 released {{!}}".
  21. [http://labourbureaunew.gov.in/MIL_CPI_IW_SEP_2017_EH.pdf Data September 2017]labourbureaunew.gov.in {{Webarchive. link. (17 November 2017)
  22. [http://labourbureaunew.gov.in/MIL_CPI_IW_OCT_2017_EH.pdf Data October 2017]labourbureaunew.gov.in {{Webarchive. link. (15 December 2017)
  23. (2017-12-04). "StaffToday - CG Employee News, Rules, O.M & Notification CPI(IW) Index of Oct, 17 released : Expected DA from January 2018 @ 7% for 7th CPC & @ 143% for 6th CPC {{!}}".
  24. (2018-04-28). "StaffToday - CG Employee News, Rules, O.M & Notification Expected DA : AICPIN for the month of March 2018 {{!}}".
  25. (2018-08-01). "StaffToday - CG Employee News, Rules, O.M & Notification Consumer Price Index for Industrial Workers (CPI-IW) — June, 2018 : Ministry of Labour & Employment Press Release {{!}}".
  26. (2019-01-31). "StaffToday - CG Employee News, Rules, O.M & Notification प्रतिशतता में कोई बदलाव नहीं {{!}} अखिल-भारत उपभोक्ता मूल्य सूचकांक - दिसम्बर, 2018 / No Change in percentage {{!}} All India Consumer Price Index - December, 2018 {{!}}".
  27. (2019-03-29). "StaffToday - CG Employee News, Rules, O.M & Notification DA: No change in percentage - AICPIN for the Month of February 2019 {{!}}".
  28. (2019-06-30). "StaffToday - CG Employee News, Rules, O.M & Notification AICPIN for May 2019 pegged at 314 by increasing 2 points - Labour Bureau {{!}}".
  29. stafftoday, Author. (2019-09-30). "CPI-IW for August 2019 increased by 1 point".
  30. "Referencer | DA Rates (Dearness Allowances Rates)".
  31. (10 November 2016). "Sixth CPC DA enhanced from 125 to 132 % from 1st July 2016".
  32. "Dearness Allowance/DEPARTMENT OF Expenditure | Ministry of Finance |Government of India".
  33. (2017-09-20). "Dearness Allowance from July, 2017 @ 5%: Finance Ministry Order".
  34. (2018-03-15). "StaffToday - CG Employee News, Rules, O.M & Notification Dearness Allowance revised from 5% to 7% wef January 2018 {{!}}".
  35. (2018-09-09). "StaffToday - CG Employee News, Rules, O.M & Notification Dearness Allowance from 01 July 2018 @ 9%: Department of Expenditure Order {{!}}".
  36. (2019-02-27). "StaffToday - CG Employee News, Rules, O.M & Notification Dearness Allowance @ 12% from January 2019 - Department of Expenditure Order {{!}}".
  37. Kumari, Kiran. (31 July 2019). "Confirm! DA/DR from July, 2019: 5% increase in 7th CPC DA @17% and 10% increase in 6th CPC DA @ 164%".
  38. (2019-10-14). "Dearness Allowance @ 17% w.e.f. 01.07.2019 {{!}} Stafftoday".
  39. "Diwali bonanza: Dearness Allowance hiked by 3% to 31%".
  40. "Cabinet approves January 2022 Dearness Allowance (DA) hike by 3% to 34%".
  41. (October 18, 2023). "Cabinet approves 4% hike in Dearness Allowance".
  42. "Union Cabinet clears 4% dearness allowance hike from Jan 2023".
  43. (October 18, 2023). "Cabinet approves release of an additional instalment of Dearness Allowance and Dearness Relief due from 01.07.2023". Press Information Bureau (PIB).
  44. "Finally, cabinet approves Dearness Allowance (DA) hike from July 2023".
  45. "📈 Expected Dearness Allowance (DA) from January 2024 Calculator".
  46. Kumari, Kiran. (2016-11-04). "Dearness Allowance from July, 2016 @ 2%:Order issued {{!}} StaffNews".
  47. Kumari, Kiran. (2017-03-30). "7th CPC Dearness Allowance from Jan, 2017 @ 4%: Finance Ministry OM dated 30.03.2017 {{!}} StaffNews".
  48. Kumari, Kiran. (2017-09-20). "Dearness Allowance from July, 2017 @ 5%: Finance Ministry Order {{!}} StaffNews".
  49. Kumari, Kiran. (2018-03-16). "Dearness Allowance from Jan 2018 @ 7%: Finance Ministry's Order {{!}} StaffNews".
  50. Kumari, Kiran. (2018-09-07). "Dearness Allowance from July, 2018 @ 9%: Department of Expenditure Order {{!}} StaffNews".
  51. Kumari, Kiran. (2019-02-28). "7th CPC Dearness Allowance from January, 2019 hike from 9% to 12% - Department of Expenditure, MoF Order {{!}} StaffNews".
  52. Kumari, Kiran. (2019-10-15). "Revised DA from July, 2019 @ 17% - Order issued by Finance Ministry {{!}} StaffNews".
  53. Kumari, Kiran. (2020-04-23). "Freezing of Dearness Allowance and Dearness Relief at current rates till July 2021 महंगाई भत्ते और महंगाई राहत की मौजूदा दरों को जुलाई 2021 तक रोकने के संबंध में {{!}} StaffNews".
  54. Kumari, Kiran. (2021-07-20). "Revised rates of Dearness Allowance w.e.f. 01.07.2021: Fin Min DoE Order 20.07.2021 {{!}} StaffNews".
  55. Kumari, Kiran. (2021-10-25). "Revision of Rate of Dearness Allowance (DA) due from 01.07.2021- Enhanced 3% from 28% to 31%: DoE OM {{!}} StaffNews".
  56. Kumari, Kiran. (2022-03-31). "Dearness Allowance - Revised Rates effective from 01.01.2022: DoE OM dated 31.03.2022 {{!}} StaffNews".
  57. "📈 Expected Dearness Allowance (DA) from January 2024 Calculator".
  58. "Cabinet approves additional instalment of three percent of Dearness Allowance to Central Government employees and Dearness Relief to Pensioners".
  59. "No. 1/1(1)/2025-E.II(B) Government of India".
  60. (2025-09-25). "Central government employees likely to get 3% DA hike from July 2025".
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