7% DA from July 2014 – Prompt decision is worth appreciating..!
The Centre has announced an additional 7% DA hike for the Central Government employees and Pensioners from July 2014.
Usually, agendas for central government employees’ DA hike are presented at the Cabinet meeting only on the third or fourth Thursdays of the month. There are times when these decisions were made during the last cabinet meeting of the season. Sometimes, these decisions are not made even during the last meeting and are taken up only during special meeting or at critical times.
On the 4th of this month, out of the blue, the Government announced a 7% DA hike. The cabinet’s announcement gives a positive conclusion to the relentless waiting of the past few weeks.
DA is calculated twice a year (from January to June, and from July to December) based on the changes in the Consumer Price Index (IW) BY 2001=100. The AICPIN numbers of the month are released by the Labour Bureau the following month.
In the month of August, the Labour Bureau sends the AICPIN data for the months of January to July, to the Finance Ministry. Based on the data, the Finance Ministry calculates the DA hike and the additional expense likely to be incurred, and presents the findings and reports towards the end of August to the Cabinet for its approval. The final decision is made in the month of September. This is the usual procedure.
Irrespective of the date of the Cabinet approval in the month of September, the DA hikes are calculated and given along with the salary for the month of September. Increase for the month of July and August are calculated and given as arrears to the employees and pensioners too.
Although 7% hike has been confirmed already, the prompt decision is worth appreciating!
CPI (IW) BY 2001=100 Data with calculation of additional Dearnress Allowance from July 2014…
| Month / Year |
B.Y. 2001=100 | Total of 12 Months |
12 Months Average |
% Increase over 115.763 |
App. DA | DA % |
| Jan-14 | 237 | 2802 | 233.50 | 117.74 | 101.71 | 101 |
| Feb-14 | 238 | 2817 | 234.75 | 118.99 | 102.79 | 102 |
| Mar-14 | 239 | 2832 | 236.00 | 120.24 | 103.87 | 103 |
| Apr-14 | 242 | 2848 | 237.33 | 121.57 | 105.02 | 105 |
| May-14 | 244 | 2864 | 238.67 | 122.91 | 106.17 | 106 |
| Jun-14 | 246 | 2879 | 239.92 | 124.16 | 107.25 | 107 |
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