Dearness Allowance is calculated according to the cost of living allowance paid to government employees and pensioners .The amount of DA depends on the market movement which, is unpredictable. This is why it becomes important to understand that the government can compensate only to a certain extent in accordance with its estimates.
This allowance is specifically offered to government employees because of the uncertain nature of their shifts and transfers from one place to another.
The main reason for this is the sub division of India into Metropolitan cities, Districts, Towns and Villages.
Cabinet approves 5% dearness allowance for central government employees
The sub division means that an individual’s cost of living can vary from one place to another depending on their transfer area. So DA is necessary in a place like India
According to AICPIN calculation all Central government employees and pensioners, including Defence & Railways, are waiting for the announcement of additional DA due from July 2019. Usually DA increment happens twice in a year, that comes in January & July generally and released in March & September. It is fully taxable.
The Finance Ministry will issue a order for payment of DA to all eligible employees. Almost 90% of the formal procedures have been completed but the Cabinet Committee approval is being awaited.
Currently CG employees are getting 12% DA, which was implemented last in January 2019. They are now waiting for the second half DA hike of the year 2019.
In recent Cabinet meeting, a major decision would be taken regarding the DA & Bonus hike of the CG employees.
Since, no announcement has been made by the government and In the festival mood(Dasara, Durga Pooja), employees are waiting for the announcement of DA hike, but the Government is delaying to announce the festival bonus as well as DA hike
Due to official visits, our Honourable PM is engaged. So Cabinet meeting and approval regarding DA hike is getting delayed. But it will be rectified once the meeting is arranged. So hopefully, all employees are waiting for the good news.