Expected DA from January 2015 - The Next Episode Begins...!

The Centre has announced a hike of 7% Dearness Allowance and Dearness Relief for Central Government employees and Pensioners, with effect from July 2014 on 4th of this month. Soon, Finance Ministry will issue appropriate orders for payment of Dearness allowance to all.  As and when orders are published by the Ministry of Finance, we will be posted in our website immediately.

According to the fluctuation of price index past six months from Jan to Jun 2014, the additional Dearness allowance has been arrived as 7% only. It seems there are a few employees who are unhappy with the single-digit number because until then they have been getting double-digit DA hikes.

The disappointment also reflects the high expectations that people have from the Modi government. Our readers have been raising a number of questions in this regard. While the previous Manmohan Singh government had twice given them DA hike of 10%, why has Modi government given them only 7% increase?

First of all, the ruling party at the Centre has no direct impact on the DA calculations. DA is calculated on the basis of AICPIN points, which are based on price rise.