Falling additional DA hike; Decreasing curiosity among employees

Indian Military Veterans

Along with the decreasing percentage of additional Dearness Allowance, there is also a noticeable fall in interest among employees to know more about ‘Expected DA’…!

“There was tremendous curiosity when initial reports surfaced that ‘Expected DA’ could be as high as 10% in 2013. But, now, when the expectation is fixed at around 5%, readership for the topic has decreased considerably.”

Dearness Allowance for Central Government employees, which is given once every six months, is currently expected to be not more than a very minimal 5%.

Additional Dearness Allowance from July 2015 is based on the fluctuation in price of essential commodities between the months of January and June 2015. With the CPI(IW) data available for only three months as of now, the general prediction is that if the AICPIN falls by 6 points total in three months, the additional DA could be as low as 4% from July 2015.

The chances of a 6% of additional DA increase with effect from July 2015 are very minimal.

Statistics of AICPIN of the next two months will decide if the next additional DA is going to be 5% or 6%.

Why is Dearness Allowance, which is given once every six months in order to help the salaried class manage the increasing prices of essential commodities, so important this time?

What has DA got to do with the 7th Pay Commission? and

What is the connection between the 7th Pay Commission and Dearness Allowance?

Let’s look at them in detail – Click to continue…