Friday, May 10, 2013

Increase in rate of DA is in proportion to the increase in the rate of inflation



The below statement was stated by Shri.Namonarain Meena in Lok Sabha in a written reply to a question on 3rd May, 2013 about the increase in the rate of Dearness allowance to Central Government employees is in proportion to the increase in the rate of inflation.

As per the recommendations of the Sixth Central Pay Commission, the Dearness Allowance (DA) is given to Central Government employees in January and June every year based on last 12 month average of all India Consumer Price Index for Industrial Workers (2001=100).

The build-up of CPI-IW inflation and Dearness Allowance (DA) since the commencement of Sixth pay commission is given below :-

 
Year
12 month average of
CPI-IW (2001=100)
Build-up of CPI-IW
inflation (%)
Annual Dearness Allowance
(DA) (%)
2005
115.77
0.00
0
2006
122.92
6.18
6
2007
130.75
12.94
12
2008
141.67
22.37
22
2009
157.08
35.69
35
2010
175.92
51.96
51
2011
191.50
65.42
65
2012
209.33
80.82
80

The increase in the rate of DA to the Central Government employees is in proportion to the increase in the rate of inflation in the country. The fraction of inflation is carried forward.

The above statement was stated by Shri.Namonarain Meena in Lok Sabha in a written reply to a question on 3rd May, 2013.