DA calculation: Confederation of Central Government Employees and Workers told the government that DA calculation of central employees and pensioners should be done on the basis of 3 months average instead of 12 months average.
DA calculation formula: The Confederation of Central Government Employees and Workers has appealed to the government to change the formula for DA (dearness allowance) calculation for employees and pensioners so that allowance can be given according to inflation every three months. In a letter to the Union Cabinet Secretary, the General Secretary of the Confederation, SB Yadav, urged to improve the calculation of Dearness Allowance (DA) and Dearness Relief (DR) for employees and retired employees respectively.
There is inequality in DA calculation method
This letter mentions the inequality in the DA calculation method of government employees working in different departments. The DA calculation formula for employees working in other public sector units including government banks is different from the DA calculation formula of employees working in other departments of the Central Government. The Confederation suggested that the 12-month average should be replaced by a three-month average. That is, there should be a change in the dearness allowance so that like the employees working in the public sector and banks, the employees of other departments also get compensation according to the actual price rise every three months.
DA Calculation Formula for PSU Employees and Other Central Government Employees
DA = { (Average of AICPI (Base Year 2016=100) for last 12 months – 115.76)/115.76 } x 100
For Public Sector Employees
DA = { (Average of AICPI (Base Year 2001=100) for last 3 months – 126.33)/126.33 } x 100
Emphasizing on bringing uniformity in the calculation method, the letter said that the DA of banking employees is revised every three months. In this way, the central government employees are being deprived of 0.9 percent DA for six months. We should also get DA in the same way as bank and LIC workers get point-to-point DA.
