The Central government is likely to announce DA arrears of 1.5 years i.e. 18 months to its employees as a one time settlement of Rs 2 lakh, said Moneycontrol.com (Hindi) citing media reports.
However, there has been no official statement from the government yet on this matter.
The Dearness Allowance and Dearness Relief of Central government employees and pensioners were restored to 31 percent from 17 percent from October 2021. The All-India Consumer Price Index will be used to calculate the DA for the months of 2021
Central government employees have been continuously demanding the withheld DA from January 2020 to June 2021.
Sources told Moneycontrol.com, talks have been held with the cabinet secretary. According to Shiv Gopal Mishra, Secretary (Staff Side) of the National Council of JCM, the council has placed a demand from the government but no solution has been found so far, the report said.
Dearness Allowance
Dearness Allowance is a component of salary which is some fixed percentage of the basic salary, aimed at hedging the impact of inflation. Since DA is directly related to the cost of living, the DA component is different for different employees based on their location. This means DA is different for employees in the urban sector, semi-urban sector, or the rural sector.
The formula to calculate the dearness allowance was changed in 2006 by the Government. Presently, for central government employees, DA is calculated as under: Dearness Allowance percentage = ((Average of AICPI (Base Year 2001=100) for the past 12 months -115.76)/115.76) x 100 where AICPI stands for All-India Consumer Price Index.
