Dearness Allowance: What is the meaning of Dearness Allowance, understand in an easy way
What is the meaning of Dearness Allowance, easy to understand
- DA was introduced in India in 1972
- DA is calculated on the basis of Consumer Price Index
- Three installments of central employees are due
Meaning: Every government employee is waiting for dearness allowance. Due to the corona epidemic, the central government had banned DA i.e. dearness allowance. Such employees are to get three installments of DA. Generally DA is announced in the month of January and July every year. Generally DA is around 4 per cent but it can be increased or decreased. At present, central employees are getting 17 percent dearness allowance and if the government formally approves it, then it will increase to 28 percent. It has been calculated on the basis of four per cent, four per cent and three per cent.
what is dearness allowance
Dearness Allowance is provided to improve the standard of living of government employees. Even after rising inflation, the standard of living of the employee should not be affected in any way, so it is increased. It is given to government employees, public sector employees and pensioners. It was started during the Second World War. At that time it was called Food Dearness Allowance or Dearness Food Allowance. Dearness Allowance was first introduced in India in 1972 from Mumbai. After this, the Central Government started giving dearness allowance to all the government employees.
This is how DA is calculated
There is a fixed formula for calculating dearness allowance, it is determined by the consumer price index or CPI. Percentage of Dearness Allowance = Average of CPI for the last 12 months – 115.76. Now the number that comes will be divided by 115.76. The number obtained is multiplied by 100.
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