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
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 :-
12 month average of CPI-IW (2001=100)
Build-up of CPI-IW inflation (%)
Annual Dearness Allowance(DA) (%)
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.