DEARNESS ALLOWANCE

               Introduced in the World War II, Dearness Allowance or DA was initially known as ‘Dear Food Allowance’. In the initial years, Dearness Allowance was provided to employees by the government as a demand for wage revision was raised. However, later it was linked to the Consumer Price Index. There have been attempts to revise and restructure the percentage of Dearness Allowance by a number of committees in the Central Government.

                In layman terms, dearness allowance is defined as the cost of living adjustment allowance which the government offers to public sector employees, as well as pensioners of the same. Dearness Allowance is a component of the salary which is applicable to employees in India.

Calculation of Dearness Allowance

Post the Second World War, dearness allowance was introduced as a component by the government. After 2006, formula for calculating dearness allowance has been changed and currently, DA is calculated as mentioned below for the following set of employees

For Central Government employees:

Dearness Allowance % = ((Average of AICPI (Base Year 2001=100) for the past 12 months -115.76)/115.76)*100

Where, AICPI stands for All-India Consumer Price Index.

           From 1st of January 1996 onwards, dearness allowance is included in order to compensate for the price rise or inflation, in a specific financial year. Therefore, it is revised biannually, i.e. once on 1st January and then, on 1st July.

DA RATES APPLICABLE TO ODISHA GOVERNMENT EMPLOYEES

 7TH PAY WEF 01.01.2016 & ONWARDS

DATE FROM WHICH PAYBLE                                  RATE OF DA

01.01.2016                                                                         No DA    

01.07.2016                                                                  2% of basic pay

01.01.2017                                                                  4% of basic pay

01.07.2017                                                                  5% of basic pay

01.01.2018                                                                  7% of basic pay

01.07.2018                                                                  9% of basic pay

01.01.2019                                                                  12% of basic pay

01.07.2019                                                                  17% of basic pay

01.01.2020                                                                  17% of basic pay

01.07.2020                                                                  17% of basic pay

01.01.2021                                                                  17% of basic pay

01.07.2021                                                                  28% of basic pay

01.07.2021                                                                  31% of basic pay

01.01.2022                                                                  34% of basic pay

01.07.2022                                                                 38% of basic pay

01.01.2023                                                                 42% of basic pay

01.07.2023                                                                 46% of basic pay

01.01.2024                                                                  50% of basic pay

01.7.2024                                                                     53% of basic pay

DATE FROM WHICH PAYBLE                                  RATE OF DA

                01.01.2006                                                           No DA

                 01.07.2006                                                       2% of basic pay plus grade pay       

                 01.01.2007                                                       6% of basic pay plus grade pay

                   01.01.2016                                                         125% of basic pay plus grade pay

                   01.01.2017                                                         136% of basic pay plus grade pay

                   01.07.2017                                                         139% of basic pay plus grade pay

                   01.01.2018                                                         142% of basic pay plus grade pay

                   01.07.2018                                                         148% of basic pay plus grade pay

                    01.01.2019                                                        154% of basic pay plus grade pay

                    01.07.2019                                                        164% of basic pay plus grade pay

                    01.01.2020                                                        164% of basic pay plus grade pay

                    01.07.2020                                                        164% of basic pay plus grade pay

                    01.01.2021                                                        164% of basic pay plus grade pay

                    01.07.2021                                                        189% of basic pay plus grade pay

                    01.07.2021                                                        196% of basic pay plus grade pay

                   01.01.2022                                                         203% of basic pay plus grade pay

                     01.07.2022                                                      212% of basic pay plus grade pay

                     01.01.2023                                                      221% of basic pay plus grade pay

                     01.07.2023                                                      230% of basic pay plus grade pay