DEARNESS ALLOWANCE
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DEARNESS ALLOWANCE
Introduced in the World War II,
Dearness Allowance or DA was initially known as ‘Dear Food Allowance’. In the
initial years, Dearness Allowance was provided to employees by the government
as a demand for wage revision was raised. However, later it was linked to the
Consumer Price Index. There have been attempts to revise and restructure the
percentage of Dearness Allowance by a number of committees in the Central
Government.
In layman terms, dearness
allowance is defined as the cost of living adjustment allowance which the
government offers to public sector employees, as well as pensioners of the
same. Dearness Allowance is a component of the salary which is applicable to employees
in India.
Calculation
of Dearness Allowance
Post
the Second World War, dearness allowance was introduced as a component by the
government. After 2006, formula for calculating dearness allowance has been
changed and currently, DA is calculated as mentioned below for the following
set of employees
For
Central Government employees:
Dearness
Allowance % = ((Average of AICPI (Base Year 2001=100) for the past 12 months
-115.76)/115.76)*100
Where,
AICPI stands for All-India Consumer Price Index.
From 1st of January 1996 onwards,
dearness allowance is included in order to compensate for the price rise or
inflation, in a specific financial year. Therefore, it is revised biannually,
i.e. once on 1st January and then, on 1st July.
DA RATES APPLICABLE TO ODISHA GOVERNMENT EMPLOYEES
7TH PAY WEF 01.01.2016 & ONWARDS
DATE FROM WHICH PAYBLE RATE OF DA
01.01.2016 No DA
01.07.2016 2% of basic pay
01.01.2017 4% of basic pay
01.07.2017 5% of basic pay
01.01.2018 7% of basic pay
01.07.2018 9% of basic pay
01.01.2019 12% of basic pay
01.07.2019 17% of basic pay
01.01.2020 17% of basic pay
01.07.2020 17% of basic pay
01.01.2021 17% of basic pay
01.07.2021 28% of basic pay
01.07.2021 31% of basic pay
01.01.2022 34% of basic pay
01.07.2022 38% of basic pay
01.01.2023 42% of basic pay
01.07.2023 46% of basic pay
01.01.2024 50% of basic pay
DATE
FROM WHICH PAYBLE RATE OF DA
01.01.2006
No DA
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