DA Calculation for Central Government Employees: The Confederation of Central Government Employees and Workers has urged the Centre to consider revising the computation formula for dearness allowance for central staff and pensioners.
In a letter addressed to the Union cabinet secretary, S B Yadav, secretary general of the confederation – representing about 7 lakh employees working in various central government departments – suggested improvements in the computation of dearness allowance (DA) and Dearness Relief (DR) for the employees and retirees, respectively.
Confederation suggests a new formula to calculate DA for government employees
The letter highlighted the disparity in the DA calculation method for government employees working in different departments. The formula used for DA calculation for the employees working in public sector units, including PSU banks, is different than the one used for other central government departments.
The confederation suggested that the average of 12 months should be replaced by a three-month average, which means variable DA should be given so that the employees get compensated by the actual price rise every three months, as in public sector employees and bank employees.
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DA calculation formulas for PSU employees and other central government staff
For central government employees:
DA = { (Average of AICPI (Base year 2016=100) for the last 12 months – 115.76)/115.76 } x 100
For public sector employees:
DA = { (Average of AICPI (Base year 2001=100) for the last 3 months – 126.33)/126.33 } x 100
Stressing the need to bring parity in the calculation method, the letter said the DA of banking employees is revised every quarter, i.e., Feb-April, May-July, August-October, and November-Jan every year.
Highlighting this alleged discrepancy, the employees’ representative body said if a price rise is taking place in January, it is compensated partially after 12 months. “The DA should be calculated and paid every three months instead of six months.”
It has suggested that ‘point to point DA’ should be provided. “Now the DA is rounded off to lowest value if we are eligible for 42.90% DA, we are sanctioned only 42% DA, the 0.9% DA is being deprived” to the central government employees for six months,
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