Thursday, 7 October 2010

Expected Dearness Allowance from January 2011 and its impact

Recently the Union Cabinet has been declared 45% Dearness Allowance for central government employees from the month of July 2010. This has been on the basis of the Consumer price index from January 2010 to June 2010. For the calculation of Dearness allowance the average increase rate of consumer price index for the last six months. In July 2010 also the consumer price index had an increase in 9.88 %. If inflation goes up like this, no doubt the next D.A from January 2011 also will be near about 8 to 10 %. We expect and hope that the inflation should come down and the burden on the normal people should be reduced.

Any way next Dearness allowance will overcome 50% and according to the 6th central pay commission, when the D.A exceeds 50% some compensatory allowances will be increase to 25% percent. See the trend on D.A rates

On January 2010 the D.A increased by 8% (from 27% to 35%

On July 2010 it has been increased by 10% (from 35% to 45%)

No doubt the next time, that is on January 2010 it will cross the border of 50%

Let us see the allowances which may increase at the time when the D.A crosses 50%

They are Children Education Allowance, Child Care Allowance, Washing Allowance, Cycle Allowance, Cash Handling Allowance, Conveyance Allowance, Split Duty Allowance and some advances such as Festival allowances and Flood Advance.?
Read More

Allowances Admissible to Central Government Employees
Why D.A (Dearness Allowance) is more awaited than Increment

11 comments :

  1. Somaranjan Mohanty5 December 2010 at 22:57

    whether transport allowance will be rise 25% if DA will reach 50% of basic

    ReplyDelete
  2. trnasport allowance will not increase 25% more when D.A reach 50% because T.A is increasing accroding to the increase of D.A. Only some daily allowances such as children education allowance, uniform allowance etc. will be increased when D.A reach 50%

    ReplyDelete
  3. CHANNAVEEREGOWDA2 January 2011 at 07:37

    KARNATAKA GOVERNMENT EMPLOYEES WILL BE THE EXPECTED DA FROM 1ST JANUARY-2011 AT LEAST 10% ON THE PRESENT INDEX PRICE

    ReplyDelete
  4. I THINK THE DA MAY BE RAISED BY 10% BECAUSE THE INFLATION HAS GONE UP WITH THE HIKE IN PETROL PRICES

    ReplyDelete
  5. C.J.Mathews Sankarathil MBA says: Your comment is awaiting moderation.

    January 14, 2011 at 2:18 PM
    Month / B.Y. 2001=100 Total of 12 Months % Increase App. DA DA

    Year 12 Months Average over 115.763 %

    8-Jun 140 1623 135.25 19.49 16.84 16
    8-Jul 143 1634 136.17 20.41 17.63 17
    8-Aug 145 1646 137.17 21.41 18.49 18
    8-Sep 146 1659 138.25 22.49 19.43 19
    8-Oct 148 1673 139.42 23.66 20.44 20
    8-Nov 148 1687 140.58 24.82 21.44 21

    8-Dec 147 1700 141.67 25.91 22.38 22
    9-Jan 148 1714 142.83 27.07 23.39 23
    9-Feb 148 1727 143.92 28.16 24.32 24
    9-Mar 148 1738 144.83 29.07 25.11 25
    9-Apr 150 1750 145.83 30.07 25.98 25
    9-May 151 1762 146.83 31.07 26.84 26

    9-Jun 153 1775 147.92 32.16 27.78 27
    9-Jul 160 1792 149.33 33.57 29 29
    9-Aug 162 1809 150.75 34.99 30.23 30
    9-Sep 163 1826 152.17 36.41 31.45 31
    9-Oct 165 1843 153.58 37.82 32.67 32
    9-Nov 168 1863 155.25 39.49 34.11 34

    9-Dec 169 1885 157.08 41.32 35.7 35
    10-Jan 172 1909 159.08 43.32 37.42 37
    10-Feb 170 1931 160.92 45.16 39.01 39
    10-Mar 170 1953 162.75 46.99 40.59 40
    10-Apr 170 1973 164.42 48.66 42.03 42
    10-May 172 1994 166.17 50.41 43.54 43

    10-Jun 174 2015 167.92 52.16 45.05 45
    10-Jul 178 2033 169.42 53.66 46.35 46
    10-Aug 178
    10-Sep 179
    10-Oct 181
    10-Nov 182
    10-Dec ? 186 ? 56 %

    If the CPI for December comes to 186 points, sure and certain you will get 10% DA from January 2011. If it comes to 185 only then the DA will be limited to 8%. Cjm

    ReplyDelete
  6. C.J.Mathews Sankarathil MBA says:
    January 21, 2011 at 4:40 PM
    CENTRE-WISE CPI(AL/RL)

    CONSUMER PRICE INDEX NUMBERS(GENERAL) FOR AGRICULTURAL
    AND RURAL LABOURERS (BASE 1986-87=100)

    Sr.No.
    State
    Agricultural Labourers November 2010
    Agricultural Labourers December 2010
    Agricultural Labourers November 2010
    Agricultural Labourers December 2010

    1
    Andhra Pradesh
    589
    604
    586
    600

    2
    Assam
    583
    586
    587
    589

    3
    Bihar
    534
    538
    534
    538

    4
    Gujarat
    574
    596
    573
    595

    5
    Haryana
    638
    642
    634
    637

    6
    Himachal Pradesh
    486
    486
    504
    504

    7
    Jammu & Kashmir
    561
    575
    558
    570

    8
    Karnataka
    579
    595
    577
    594

    9
    Kerala
    550
    564
    554
    566

    10
    Madhya Pradesh
    565
    569
    572
    576

    11
    Maharashtra
    604
    624
    599
    619

    12
    Manipur
    522
    530
    523
    533

    13
    Meghalaya
    573
    579
    569
    575

    14
    Orissa
    547
    556
    546
    556

    15
    Punjab
    622
    624
    620
    621

    16
    Rajasthan
    593
    604
    586
    596

    17
    Tamil Nadu
    546
    566
    540
    559

    18
    Tripura
    514
    523
    512
    522

    19
    Uttar Pradesh
    563
    565
    560
    562

    20
    West Bengal
    562
    567
    565
    570

    ALL INDIA
    570
    581
    569
    580
    CPI prices for Agri labour etc jumped to 581 from 570. Exactly 11% jump. From itself it is clear that the Industrial labour CPI will cross 185. Expect 10% D.A from January 2011. HAPPY DA for ALL

    ReplyDelete
  7. This is very bad for central Govt employee/ex-servicemen only 6% D.A. But I think so DA near about 10% to 12% because inflation is very high.

    ReplyDelete
  8. C.J.Mathews Sankarathil MBA on February 13, 2011 at 6:45 am
    Findout the calculation and try yourself with the help of calculator. But you are lucky enough to get 7% D.A from January 2011, which will be announced by government after 15th of March 2011.
    Jan-172,Feb-170,Mar-170,,Apr-170,May-172,Jun-174,Jul-178,Aug-178,Sep-179,Oct-181,Nov-182,Dec-185. DA=[(2111/12)-115.76]*100/115.76=51.966. This 6.966 will be round3ed to 7%. It means 45+7 = 52% from January 2011 onwards. Happy D.A . C.J.Mathews Sankarathil.MBA

    ReplyDelete
  9. MOHAMMEDALI KHERUWALA21 February 2011 at 22:12

    THE INCRESE IN DEARNESS ALLOWANCE FROM 1ST JAN 2011 WILL BE AROUND 12% IN VIEW OF INFLATIONARY TREND.

    ReplyDelete
  10. vishnu prasad, BSES (Delhi Govt.)27 February 2011 at 10:33

    I THINK THE DA MAY BE HIKED BY 8 - 9% BECAUSE THE INFLATION HAS GONE UP WITH THE HIKE IN PETROL AND OTHER COMMODITIES.

    NO DOUBT OTHER allowances may also increase at the time when the D.A crosses 50%.

    ReplyDelete
  11. More than 10% is desirable.

    ReplyDelete