DA WILL CROSS 100% IN JAN 2014 EVEN IF NO RAISE IN RATES

According to a press release issued today by the Labour Bureau, Ministry of Labour & Employment the All-India CPI-IW for July, 2013 rose by 4 points and stands at 235. The largest upward pressure to the change in current index came from Food group contributing 1.99 percentage points to the total change. At item level, Rice, Fish Fresh, Goat Meat, Milk, Onions, Chillies Green, Potato, Tomato & other Vegetables. Electricity Charges, Firewood, Bus Fare, Petrol, etc. are responsible for the rise in index. However, this was compensated to some extent by Groundnut Oil, Primary and secondary School Fees putting downward pressure on the index. 


Even if no increase for the next 5 months, the calculated Dearness Allowance for Central Government Employees and Dearness Relief for CG Pensioner confirmed to be 98% from January, 2014. Under normal index changes, DA/DR from Jan 2014 may touch or cross 100%. Considering the current inflation,, economic scenario and the reluctance of the government for tight measures as the elections are close, the DA rates will be higher.

As per the sixth pay commission recommended that Whenever the DA reaches 50% level , Some allowances have to be increased by 25 %

Read : List of allowances to be hiked with 50% DA hike