Dearness Allowance from January 2014 will be 100%

Dearness Allowance from January 2014 will be 100%

              The rate of Dearness Allowance from January 2014 has been now confirmed by just released AICPIN for the month of December 2013. Labour bureau has released the All India Consumer Price Index Number for Industrial workers for the month of December 2013 in its website www.Labour bureau.nic.in to day. The AICPIN for the month of December is very much required to finalize the percentage of DA to be increased for central government employees from January 2014.

             The CPI for Industrial workers is the only factor to determine the additional installment of DA to be released with effect from 01.01.2014, so we need to know the 12 months average of AICPIN from January 2013 to December 2013 to calculate the percentage of Dearness Allowance to be paid from January 2014. Gservants, in its article published on 30th August 2013, told that the Percentage of DA to be paid from January 2014 will be from 100% to 102% . With 7 months CPI points it was estimated that there would be 10% to 12% Hike from existing rate of 90%. The AICPIN for the month of November 2013 has almost confirmed the above estimate that it will not be less than 100%. Now the December months AICPIN confirmed that the rate of DA to be released from January 2014 will be exactly 100%. Even though there is a decrease in 4 points the rate of DA is 100%. The following table shows how the dearness allowance  has reached 100% level.

DEARNESS ALLOWANCE FROM JANUARY 2014
Month	Base Year 2001    =100	Total of 12 Months	Twelve month Avarage	% of Increase Over  115.76 for DA
January 2013	221	2535	211.25	80.83
Febraury 2013	223	2559	213.25	82.49
March 2013	224	2582	215.17	84.22
April 2013	226	2603	216.92	85.88
May 2013	228	2625	218.75	87.39
June 2013	231	2648	220.67	88.97
July 2013	235	2671	222.58	90.62
August 2013	237	2694	224.50	92.28
September 2013	238	2717	226.42	93.94
October 2013	241	2741	228.42	97.32
November 2013	243	2766	230.5	99.11
December 2013	239	2786	232.166	100.55

source : gservants.com

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The impact of Price rise will take Dearness Allowance to 100% soon

By the end of this month the rate of  Dearness Allowance  is getting ready to touch 80% level. We can expect that the rise in prices will take it  to 100% level with in a couple of year.

Dearness Allowance Vs Price Rise

The central government employee’s confederation opined that The Dearness allowance which the cg employees are receiving now is not enough to meet the price rise of essential commodities.

The effect of 50% Dearness allowance on our Pay

The sixth pay commission recommended that Whenever the DA reaches 50% level , Some allowances have to be increased by 25 % . Where as in Fifth CPC , it had been recommended that when the DA reaches 50% it should be merged with Basic Pay. It has been implemented with effect from 2004. And the fifth cpc also recommended that the Pay and Allowance should be revised after every five years. But it was not accepted by the Government.

The objectives of increasing Allowances by 25% as per the 6 CPC or merging DA with Basic pay as in the case of 5CPC, when  DA reaches 50% level, is to make the central government employees to balance the financial burden caused by Price Rise through increasing their pay package.

The impact of DA Reaches 100%

According to fifth CPC, the 50 % DA had been merged with Basic Pay and in 6CPC , some allowances have been increased by 25%. But 5th CPC didn’t say anything about what should be done when DA touch 100% level. Because the govt servants receiving their pay as per pre revised pay were not granted merging of another 50% of DA in 5th CPC scale.

7th Pay commission

Even after the rate of DA is increased to 50% level it is not enough to increase some allowance by 25% as it will not help to handle the expenses caused by inflation. So The central government employees are expecting that government should constitute 7th pay commission immediately.

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