- Dearness allowance
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In India, Dearness allowance (D.A.) is part of a person's salary D.A. is calculated as a percent of the basic salary. This amount is then added to the basic salary along with house rent allowance to get the total salary. Rates vary as per rural/urban areas etc.
Pensioners and the family pensioners are granted D.A. against the price rise. During the reemployment under Central or State Government, Government undertaking, Autonomous body or Local Body, they are not eligible to draw D.A., in which case D.A. is allowed in addition to fixed pay or time scale. In other cases of reemployment D.A. is allowed subject to the limit of emoluments last drawn. D.A. is not allowed while the pensioner stays abroad and also in case of employees absorbed in public undertaking or bodies. If the pensioner stayed abroad without reemployment, he shall be eligible to draw D.A. on pension.
Contents
Rates of Dearness Allowance
Prior to 1972, there was no element of D.A. on pensions. From 01.04.1972 there was a flat rate of D.A. to all the pensioners:
- 01.04.1972 - Rs.5
- 01.04.1973 - Rs.10
- 01.10.1973 - Rs.15
- 01.04.1974 - Rs.20
- 01.02.1975 - Rs.28
- 01.02.1976 - Rs.32
- 01.04.1977 - 10%, subject to maximum of Rs.15
- 15.09.1977 - Rs.10 for those retired prior to 01.06.1961, Rs.5 after 01.06.1961
- 01.04.1978 - 5% increase, minimum Rs.10, maximum Rs.25
From 01.04.1979 to 30.09.1984 there were 28 installments of D.A. paid to the pensioners at certain fixed rates for 13 slabs of pension amounts. From 01.10.1984 to date, the pensioners are paid D.A. at certain percentage of basic pension.
Dearness Allowance is calculated on the original pension without commutation.
Dearness Allowance is granted at certain percentage of basic pension and it is revised every 6 months from 01.07.1986 onwards based on cost of living index.
Latest DA Rate for Central Government Employees:
With effect from 1.1.2006, Dearness allowance is granted to compensate price increase above to which the revised pay scales relate. This will be sanctioned twice a year, payable from 1 January and 1 July.
The following table shows the rates of Dearness Allowance (as on August 2010)
Date From Which Payable Rate (in Percentage) 1-1-2007 6
1-7-2007 9
1-1-2008 12
1-7-2008 16
1-1-2009 22
1-7-2009 27
1-1-2010 35
1-7-2010 45
1-1-2011 51 (6 % hike declared on 21 March from 45% to 51%)[1]
1-7-2011 58 (7 % hike declared on 15 September 2011 from 51% to 58%)
1-1-2012 ?? (To be decided by the Union Cabinet, most likely in March 2012)
Expected DA from July 2011
DA for central government employees from July 2011 is expected to be 58 %. This calculation is based on All India CPI (IW) (Base 2001=100). Source: What will be the New DA Expected From July 2011 ? After the DA rate touched 50%, the allowances like conveyance allowance, children education allowance etc have been increased by 25% more.
References
External links
- Government of Tamil Nadu, Directorate of Pension - Dearness Allowance
- Government of Tamil Nadu, Directorate of Pension - Dearness Allowance Rate Tables
- Indian Banks Association - Dearness Allowance for Bank Employees
- All India Oriental Bank Officers Association - Salary and Allowances for Bank Officers/Employees
- How to Calculate Dearness Allowance
- Cabinet Approves 10% DA increase
Categories:- Employment compensation
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