New Delhi: : Central
government employees will be entitled to 6% additional dearness allowance (DA)
with effect from January 1, 2015, taking it to 113% of their basic pay.
DA
is linked to the consumer price index (industrial workers). The government uses
CPI-IW data of the past 12 months to arrive at a quantum for calculating any DA
hike.
The increase DA is in
accordance with the accepted formula, based on recommendations of the 6th
Central Pay Commission. According to the formula, DA is calculated on the basis
of the 12-month average of the Consumer Price Index for Industrial Workers.
The consumer price index
(industrial workers) has remained stationery at 253 for last four months August
to November and even for December, 2014; it is likely to remain same.
The CPI (IW) of other months
January, February, March, April, May, June and July are 237, 238, 239, 242,
244, 246 and 252 respectively.
As such, the retail inflation
for industrial workers between January 1 to December 31, 2014 would be used to
take a final call on the matter.
Accordingly, the average
inflation during this period had stood at 6.3 per cent.
In the above scenario, there
is not so much scope for DA increase more than 6 percent from January, 2015.
However, the employees’ bodies
are pressing hard to merge 50 percent dearness allowance (DA) with basic pay to
provide relief to employees.
With merger of DA with basic
pay, the salary and allowances paid in proportion of basic pay are increased.
As per earlier practice DA was merged with basic pay once it breached 50% mark.
But 6th Pay Commission has disallowed it.
TST