May 182016

Dearness Allowance | Rates |Rules | Eligibility |Calculator For Central Govt. Employee | Railways
Under 7th Pay Commission

The dearness allowances are the cost that central government pays to its employees for their living standard. It means people who are working under central government or any other public sector unit will be able to receive dearness allowances. The DA is being paid as per the salary of the employee. This special kind of allowance is applicable only in three countries i.e., India, Pakistan and Bangladesh. Also the DA of an employee depends on the area he / she is living in such as urban or rural area. This DA is also paid to the pensioners in these mentioned countries.

Dearness Allowance Rates Rules Eligibility Calculator For Central Govt. Employee Railways

  • Dearness Allowance rates

The DA rates are set as per the salary of the government employee. A percentage of the salary has been paid to the employee as his / her cost of living. As per the 6th pay commission the rate in 2015 January was 113% where the rate has increased to 119% in July 2015. In January 2016, the Dearness allowance rates have reached at 125%. That means the rate gets hiked by 6% for the central government employees.

  • Dearness Allowances Rules

The DA had been started from post world war 2. After that it was revised couple of times and finally in 1972, the specific rules and regulations had introduced regarding the dearness allowance. As per the dearness allowance rules, any service officer under All India Service Act, 1951 will get a specific percentage on his / her basic salary as dearness allowance. According to the regulations, people who work under government units and have fixed basic salary as per the sub-rule 5, 6A of rule 4 of IAS, sub-rule 5 of rule 4 of IPS, and sub-rule 6 of rule 4 of IFS rules shall receive the DA as per the declared rates or central government rules.

  • Dearness allowance Eligibility

The eligible person for receiving DA has to work under the government of any of the three countries India, Bangladesh and Pakistan. Also people who are working in public sector units are also eligible for the DA. Any service person that falls under the All India Service Act, 1951 is entitled to receive DA. That person must have a basic fixed salary. As per the rules of All India Service (DA) rules, 1972, a fixed percentage of allowance will be paid to all the eligible employees. The percentage will be the same for all; the amount depends on the basic pay of the employee. The DA includes the housing rents which an officer needs to pay. In last CPC the rate of DA that was settled is 125%.

Pensioners are also eligible for DA, but if they are reemployed under state, central or any governmental or local body then the person will not get any DA. Pensioners who are reemployed abroad will also not get any DA, but if not reemployed but living in abroad can receive the DA for the government.

  • Dearness allowance for central government employee

For the central government employees, the rate for the DA is 125% which is 6% higher than the last rate 119%. Since 1972, the regulations and rates were settled for DA. Since then the rates kept revising in each half of every year. In January 2015 the rate was settled at 113% for the central government which was raised to 119% in the second half of the same year. This year, in January, the rates again raised by 6% for the central government employees and reached to 125%.

  • Dearness allowance calculator

  • Dearness allowance is calculated on the basis of Consumer Price Index. Basically the allowance is based on the basic pay of the employee.
  • A fixed percentage is been settled for the DA then the amount including housing rent allowance added to the basic salary and received by the employee at the end of the month.
  • DA percentage can be different depending on the area such as urban or rural. While calculating DA for the pensioners, the current price level or CPI is considered.
  • Dearness allowance bank employees

DA for bank employees depends on the CPI points. In 2015 December, the DA had decreased by 1%. On the contrary, the previous year had witnessed 2.8% increase in bank employee DA. In 2016, Jan, Feb and March CPI reading had already come out and the analytics are expecting to further fall in DA in May.

Overview Of Dearness Allowance  

Started 1972
Rate 2016 125%
Eligible PSU, government employee, pensioner
Calculations CPI, fixed basic pay, price

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