Taking Decision on Dearness Allowance is getting delayed?
To compensate the price rise, dearness Allowance has been increased twice a year with effect from 1st January and 1st July of every year. The increase is in accordance with the accepted formula, which is based on the recommendations of the 6th Central Pay Commission. The amount of dearness allowance supposed to be increased at every six months has been decided and approved by the cabinet committee according to the prescribed formula based on All India Consumer Price Index Numbers for Industrial workers. Normally the decision for increasing dearness allowance with effect from 1st January has been taken in the meeting of cabinet committee particularly in the month of March. Take a look at the following dates on which the decision on increased percentage of dearness allowance was announced. For the last six years the announcement on dearness allowance came in the month of march and the additional DA to serving employees and DR to pensioners was included with retrospective effect from 1st January and paid with their salaries and pensions starting from March.
15/3/2007- 6% – Thursday
07/3/2008 -6% – Monday
26/2/2009- 6% – Thursday
19/3/2010 – 8% – Friday
22/3/2011-6% – Tuesday
23/3/2012 -7% – Friday
The Dearness Allowance hike from January 2013 yet to be announced.
So obviously there was an expectation among all the central government employees that this year also the Pay Bill of march Month will witness the Dearness Allowance hike. But this year till the end of March, since there was no any announcement, if it is even announced today, it cannot be included in the salary for the month of March, for those who are paid on First day of the Month. It will be paid from the April Month. Three month arrears have to be paid as a result of this delay.