The additional Dearness allowance which is announced every six months by the Central Government to the Central Government employees and the Pensioners is based depending upon the price hike of essential commodities all over the nation.
The statistics of All India Consumer Price Index for Industrial Workers (AICPIN-IW) is increased on account of the proportionate rise in twele-month as of December 2011, regarding the additional DA to be announced from 1.1.2012, which is based on the price rise from July 2011 to Dec 2011 in about 70 selected areas throughout India. These calculation are done by the Labour Ministry and it was sent to the Finance Ministry and discussed in the meeting of the Cabinet Ministers. The decision is expected to be finalised in the next meeting.
DA from 1.1.2012 may increase 7% form the existing rate is expected. Now all the Central Government employees and pensioners are getting 58% from their basic pay (Pan in the pay band + Grade Pay), it will become as 65% from 1.1.2012. The minimum of the enhanced amount of DA will be Rs.500 to the existing employees.
After the final decision is taken from the Cabinet Committee, order will be issued by the Finance Ministry in the end of this month and the DA for the month of March will be included in the salary and the previous two month’s DA will be paid as arrears in the month of April 2012.
(Source - CG Staff news)