Central employees and pensioners are eagerly waiting for the announcement of Dearness Allowance. It is being told that the Central Committee headed by the Prime Minister will take the final decision on this. However, there is no formal announcement about when the DA/DR hike will happen.
Normally DA/DR hike is announced in the month of March and September. The month of September is going on and the festival is about to come, so the central employees are eagerly waiting for it. Now such speculations are being made that it can be announced anytime in this month.
How much DA can increase It is
expected that the rate of increase of DA can be from 34% to 38% of the current rate. The DR hike for pensioners is also expected to be similar.
How to Calculate DA Hike
The government usually calculates the DA/DR hike every 6 months. January and July are favorable months for this. From the year 2006, dearness allowance is on the new calculation.
Percentage of DA for Central Government employees = [(Average of All India Consumer Price Index (AICPI) for last 12 months – 115.76/115.76]×100.
Dearness Allowance Percentage to DA for Central Public Sector Employees = (Average of Consumer Price Index for the last 3 months (Base Year 2001=100)-126.33))x100
Tax has to be paid on
DA also comes under the purview of DA tax. This part has to be filled separately in ITR. There are two categories for this. First Industrial Dearness Allowance and second Variable Dearness Allowance.