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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 SIRICILLAWill 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?
ANSWERMINISTER 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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