EXPECTED DEARNESS ALLOWANCE (DA) FROM JAN-2011 FOR CENTRAL GOVERNMENT EMPLOYEES...

The central government employees received 10% DA in addition to 35% earlier, which now stands at 45%.They got the payment as two months arrears for July and August. The DA for September was calculated in their regular monthly payments. Through this hike, employees got an increase of Rs700 to Rs900 in their monthly salaries. There was no such increase before this. Let us see some of the reasons.

The main reason behind announcing DA is due to the increase of prices in essential commodities. Labour Bureau’-which is under the central government takes the statistics of the prices of essential commodities in selected cities and this process is known as AICPIN -i.e.- All India Consumer Price Index. DA is calculated only as per the AICPIN.

Regarding the next installment of DA which is to be announced from Jan 2011,numerous speculations are pouring in. The DA percentage will be calculated as per the AICPIN from September 2010 to December 2010.Suppose the AICPIN stands at 179 points or more, there are chances of getting 10% DA from Jan 2011.

Any way let us assume that the DA will surely cross the 50% benchmark which will enable increase in some allowances.

Children Education Allowance, Child Care Allowance, Washing Allowance, Cycle Allowance, Cash Handling Allowance, Conveyance Allowance, Split Duty Allowance will be increased by 25%.