There may be an increase in dearness allowance of central employees: It may increase from 50% to 53%, decision possible in the cabinet meeting today.

About 52 lakh central employees and 60 lakh pensioners will benefit from this. (file photo)

There may soon be an increase in the dearness allowance (DA) received by central employees. According to media reports, the government can take a decision on increase in DA in the cabinet meeting to be held today i.e. on 16th October. Government can increase DA by 3%. If this happens then their dearness allowance will increase from 50% to 53%. About 52 lakh central employees and 60 lakh pensioners will benefit from this.

What is dearness allowance? Dearness Allowance is money that is given to maintain the standard of living of government employees despite rising inflation. This money is given to government employees, public sector employees and pensioners.

Its calculation is done every 6 months according to the current inflation of the country. It is calculated according to the basic pay of the employees based on the respective pay scale. Dearness allowance may be different for employees in urban, semi-urban or rural areas.

How is dearness allowance calculated? A formula has been given for determining dearness allowance. This is the formula for central government employees [(पिछले 12 महीने के ऑल इंडिया कंज्यूमर प्राइस इंडेक्स (AICPI) का औसत – 115.76)/115.76]×100. Now if we talk about the dearness allowance of people working in PSU (Public Sector Units), then the method of its calculation is – Dearness Allowance Percentage = (Average of Consumer Price Index of last 3 months (Base Year 2001=100)- 126.33))x100

What is All India Consumer Price Index? There are two types of inflation in India. One is retail and the other is wholesale inflation. Retail inflation rate is based on the prices paid by ordinary consumers. It is also called Consumer Price Index (CPI).

How much will be the benefit after DA? For this, fill your salary in the formula given below..(Basic Pay + Grade Pay) × DA% = DA Amount.

If understood in simple language, the rate of dearness allowance is multiplied in the salary which is formed after adding grade salary to the basic salary. The result that comes is called Dearness Allowance (DA). Now let us understand this with an example, suppose your basic salary is Rs 10 thousand and grade pay is Rs 1000.

By adding both the total became Rs 11 thousand. Now if we look at the increase in 50% dearness allowance, it will be Rs 5,500. Adding all your total salary was Rs 16,500. Whereas in terms of 46% DA, you are getting a salary of Rs 16,060. That means after increasing DA by 4%, there will be a benefit of Rs 440 every month.