Government of India has hiked the Dearness Allowance (DA) for the central government employees by 4% from 17 percent to 21 percent of the basic salary with effect from January 01, 2020. This will benefit about 48.34 lakh central government employees.
New Delhi (Delhi, India), March 13, 2020
The Government of India has hiked the Dearness Allowance (DA) for the central government employees by 4% from 17 percent to 21 percent of the of basic salary with effect from January 01, 2020. This will benefit about 48.34 lakh central government employees.
The Union Cabinet chaired by the Prime Minister, Shri Narendra Modi, had approved this increase of the dearness allowance rate to the central government employees in its meeting held on Friday, March 13, 2020.
In accordance with the accepted formula based on the recommendations of the Seventh Central Pay Commission (7th CPC), the dearness allowance is admissible on the basic pay to all categories of the central government employees.
Currently, the minimum basic salary among the serving central government employees in India is ₹18,000 and the maximum basic salary is ₹250,000 per month.
To compensate the central government employees for the rising cost of living, the dearness allowance is sanctioned twice a year and is payable from 01 January and 01 July.
Effective July 01, 1986, the revision of the dearness allowance for the central government employees is based on cost of living index.
The dearness allowance, payable to the central government employees, is determined with reference to a calculation based on the All India Consumer Price Index Number (AICPIN) for the Industrial Workers (Base 2001 = 100). The Central Statistics Office of the Ministry of Statistics and Programme Implementation releases AICPIN data every month.
As per the normal practice, the Government of India uses CPI-IW data for the past 12 months to calculate any dearness allowance hike for the central government employees. Accordingly, the retail inflation for industrial workers from January 01, 2019 to December 31, 2019 was used to compute the increase in dearness allowance this time.
As per the standard calculation based on the All India Consumer Price Index Number for Industrial Workers (CPI-IW), the expected DA for the Central Government Employees in the Seventh Central Pay Commission effective July 01, 2020 is likely to be an additional 5% of the of basic salary.
The retail inflation for industrial workers between July 01, 2019 and June 30, 2020 will be used to compute the increase in dearness allowance with effect from July 01, 2020.
Thus, the revised dearness allowance for the central government employees is likely to be 26 percent of the basic pay with effect from July 01, 2020.
July 01, 2020 Dearness Allowance Rate: 26% (Expected)
January 01, 2020 Dearness Allowance Rate: 21%
July 01, 2019 Dearness Allowance Rate: 17%
January 01, 2019 Dearness Allowance Rate: 12%
July 01, 2018 Dearness Allowance Rate: 9%
January 01, 2018 Dearness Allowance Rate: 7%
July 01, 2017 Dearness Allowance Rate: 5%
January 01, 2017 Dearness Allowance Rate: 4%
July 01, 2016 Dearness Allowance Rate: 2%
January 01, 2016 Dearness Allowance Rate: 0%
January 01, 2016 Dearness Allowance Rate: 125%
July 01, 2015 Dearness Allowance Rate: 119%
January 01, 2015 Dearness Allowance Rate: 113%
July 01, 2014 Dearness Allowance Rate: 107%
January 01, 2014 Dearness Allowance Rate: 100%
July 01, 2013 Dearness Allowance Rate: 90%
January 01, 2013 Dearness Allowance Rate: 80%
July 01, 2012 Dearness Allowance Rate: 72%
January 01, 2012 Dearness Allowance Rate: 65%
July 01, 2011 Dearness Allowance Rate: 58%
January 01, 2011 Dearness Allowance Rate: 51%
July 01, 2010 Dearness Allowance Rate: 45%
January 01, 2010 Dearness Allowance Rate: 35%
July 01, 2009 Dearness Allowance Rate: 27%
January 01, 2009 Dearness Allowance Rate: 22%
July 01, 2008 Dearness Allowance Rate: 16%
January 01, 2008 Dearness Allowance Rate: 12%
July 01, 2007 Dearness Allowance Rate: 9%
January 01, 2007 Dearness Allowance Rate: 6%
July 01, 2006 Dearness Allowance Rate: 2%
January 01, 2006 Dearness Allowance Rate: 0%
Inflation Neutralization: 100% for all Basic Pay Ranges
Dearness Pay: 50% DA of Basic Pay was made as Dearness Pay with effect from April 01, 2004
January 01, 2008 Dearness Allowance Rate: 97% (47% on Basic Pay + Dearness Pay)
July 01, 2007 Dearness Allowance Rate: 91% (41% on Basic Pay + Dearness Pay)
January 01, 2007 Dearness Allowance Rate: 85% (35% on Basic Pay + Dearness Pay)
July 01, 2006 Dearness Allowance Rate: 79% (29% on Basic Pay + Dearness Pay)
January 01, 2006 Dearness Allowance Rate: 74% (24% on Basic Pay + Dearness Pay)
July 01, 2005 Dearness Allowance Rate: 71% (21% on Basic Pay + Dearness Pay)
January 01, 2005 Dearness Allowance Rate: 67% (17% on Basic Pay + Dearness Pay)
July 01, 2004 Dearness Allowance Rate: 64% (14% on Basic Pay + Dearness Pay)
January 01, 2004 Dearness Allowance Rate: 61% (11% on Basic Pay + Dearness Pay)
July 01, 2003 Dearness Allowance Rate: 59%
January 01, 2003 Dearness Allowance Rate: 55%
July 01, 2002 Dearness Allowance Rate: 52%
January 01, 2002 Dearness Allowance Rate: 49%
July 01, 2001 Dearness Allowance Rate: 45%
January 01, 2001 Dearness Allowance Rate: 43%
July 01, 2000 Dearness Allowance Rate: 41%
January 01, 2000 Dearness Allowance Rate: 38%
July 01, 1999 Dearness Allowance Rate: 37%
January 01, 1999 Dearness Allowance Rate: 32%
July 01, 1998 Dearness Allowance Rate: 22%
January 01, 1998 Dearness Allowance Rate: 16%
July 01, 1997 Dearness Allowance Rate: 13%
January 01, 1997 Dearness Allowance Rate: 8%
July 01, 1996 Dearness Allowance Rate: 4%
January 01, 1996 Dearness Allowance Rate: 0%
Inflation Neutralization: 100% for all Basic Pay below Rs. 3,500; 75% for all Basic Pay from Rs. 3,501 to 6,000; 65% for all Basic Pay above Rs. 6,000
January 01, 2001 Dearness Allowance Rate: 257%
July 01, 2000 Dearness Allowance Rate: 251%
January 01, 2000 Dearness Allowance Rate: 243%
July 01, 1999 Dearness Allowance Rate: 241%
January 01, 1999 Dearness Allowance Rate: 228%
July 01, 1998 Dearness Allowance Rate: 203%
January 01, 1998 Dearness Allowance Rate: 190%
July 01, 1997 Dearness Allowance Rate: 182%
January 01, 1997 Dearness Allowance Rate: 170%
July 01, 1996 Dearness Allowance Rate: 159%
January 01, 1996 Dearness Allowance Rate: 148%
July 01, 1995 Dearness Allowance Rate: 136%
January 01, 1995 Dearness Allowance Rate: 125%
July 01, 1994 Dearness Allowance Rate: 114%
January 01, 1994 Dearness Allowance Rate: 104%
July 01, 1993 Dearness Allowance Rate: 97%
January 01, 1993 Dearness Allowance Rate: 92%
July 01, 1992 Dearness Allowance Rate: 83%
January 01, 1992 Dearness Allowance Rate: 71%
July 01, 1991 Dearness Allowance Rate: 60%
January 01, 1991 Dearness Allowance Rate: 51%
July 01, 1990 Dearness Allowance Rate: 43%
January 01, 1990 Dearness Allowance Rate: 38%
July 01, 1989 Dearness Allowance Rate: 34%
January 01, 1989 Dearness Allowance Rate: 29%
July 01, 1988 Dearness Allowance Rate: 23%
January 01, 1988 Dearness Allowance Rate: 18%
July 01, 1987 Dearness Allowance Rate: 13%
January 01, 1987 Dearness Allowance Rate: 8%
July 01, 1986 Dearness Allowance Rate: 4%
January 01, 1986 Dearness Allowance Rate: 0%
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