Expected da from July 2011
We feel features, expectations and calculations are on the forefront for most of the central government employees regarding the additional Dearness Allowance from July, 2011 to be announced soon.
There will be no change in the 7% DA unless a huge change takes place in the month of June AICPIN (i.e.if the AICPIN falls below 180 points or increase above 195, a change of DA can take place, but chances are very remote.) AICPIN now stands at 187.
Surprisingly, some employees are eager to know if the DA crosses 100%, it will merge with the basic pay or not.
There is no such recommendations said in the 6th CPC.The allowances only will be increased by another 25%, every time the DA crosses 50%.
As of now, the important increase in the allowance is Children Education Allowance and Hostel Subsidy. It was increased from Rs.12000 to Rs.15000 from 1.1.2011. This will be increase upto Rs.18750 after the Da crosses 100% and some other allowances also will be enhanced by 25% from the existing rates.
Assumption are that the DA will touch 100% in the next three years. Before the 7th CPC, which will be from 2016, the DA surely crosses 100%.
The DA was merged with the basic pay as happened in the year 2004, the 5th CPC had recommended that DA should be converted into Dearness pay each time the CPI increase by 50% over the base index used by the Pay Commission.