Centre announces eight percent increase in DA for Central Govt employees

NEW DELHI - The Congress-led United Progressive Alliance (UPA) Government on Friday announced an eight percent Dearness Allowance (DA) increase for the Central Government employees.

The DA increase has been announced to compensate for the price rise and it will be applicable from January 1, 2010.

This decision was taken at a Cabinet meeting presided over by Prime Minister Dr Manmohan Singh.

Dearness allowance (DA) is part of a person’s salary. DA is calculated as a percentage of the basic salary. This amount is then added to the basic salary along with house rent allowance to get the total salary.

Dearness Allowance is calculated on the original pension without commutation.

During the reemployment under Central or State Government, Government undertaking, Autonomous body or Local Body, they are not eligible to draw DA, in which case DA is allowed in addition to fixed pay or time scale.

In other cases of reemployment DA is allowed subject to the limit of emoluments last drawn. DA is not allowed while the pensioner stays abroad and also in case of employees absorbed in public undertaking or bodies.

If the pensioner stayed abroad without reemployment, he shall be eligible to draw DA on pension.

Dearness Allowance is granted at certain percentage of basic pension and it is revised every 6 months from 01.07.1986 onwards based on cost of living index.

Pensioners and the family pensioners are granted DA against the price rise. (ANI)