HomeDearness Allowance

“Increase in DA is in proportion to the inflation” Govt. reply in Lok Sabha

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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. 

This was stated by Shri Namo Narain Meena, Minister of State in the Ministry of Finance in written reply to undermentioned question by Shri Rajaiah Siricilla in Lok Sabha:-

GOVERNMENT OF INDIA
MINISTRY OF FINANCE
LOK SABHA

UNSTARRED QUESTION NO 6002

ANSWERED ON  03.05.2013
DA INCREASE

6002 . Shri RAJAIAH SIRICILLA

Will the Minister of FINANCE be pleased to state:-

(a) the proportionate increase in the rates of inflation vis-a-vis the Dearness Allowance (DA) of Central Government employees during each of the last three years and the current year; 
(b) whether the increase in the rate of DA to the Central Government employees is not in proportion to the increase in the rate of inflation in the country during the aforesaid period; 
(c) if so, the details thereof and the reaction of the Government thereto; and 
(d) the steps proposed to be taken by the Government to correct the situation in future?

ANSWER

MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI NAMO NARAIN MEENA)

(a) & (b) **see above**

(c) & (d) Does not arise.

Source: Lok Sabha Q&A [qref=140171]

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