Wednesday, 21 July 2010

Which you prefer more, D.A or Annual Increment?

Salary for the month of July is almost receiving by all central government Employees with Annual Increment. As per the rules of 6th Central pay commission the normal annual increment of central government employees is 3% of the basic (Basic here means Basic + Grade pay). When compare to D.A (Dearness Allowance) the annual increment is occurred only once, but, D.A
increase is twice in a year. When the employees get 3% Annual


Dearness Allowance or Annual IncrementIncrement, the D.A increase is almost 7% t0 8% and happened twice in a year. So the monetary benefit is more in the increase of Dearness Allowance than annual increment.

Let us calculate the difference of both Annual Increment and Increase of Dearness allowance.

Suppose an employee has a basic pay of Rs. 20000/-

When the D.A Increases 8% he gets 8% of 20000/-, ie, Rs. 1600/- as D.A increase and Rs. 128 in Transport allowance. The Total increase in Gross Salary is Rs. 1728/- and he gets this increase twice a year. Only the percentage of D.A may be changed.

But in case of Annual Increment he gets only 3% of Rs. 20000/-, ie, Rs. 600 and D.A 35% of 600, ie, Rs. 210 and if he is eligible for H.R.A  he gets and additional H.R.A of Rs. 180/- The total increase in gross salary is Rs. 900 per month and this increment is only once in an year.

And as per sixth central pay commission when the D.A overcome 50 % some daily allowance will automatically increases 25% percent. (See that allowances)

So I state that most employees wish to hear about the of Orders of Dearness Allowance than increment. I do not forget the fact that the increment is the reward of their experience and service and it will reflect in D.A and other allowances.

Annual Increment or Dearness allowance


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4 comments :

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  4. 3 rd MACP

    I got my last promotion as SE on last 13.01.1992. Presently SE & SSE are merged.
    I received the 2nd MACP.
    When I may get my 3rd MACP

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