Demand for improvement in DA formula for central employees

DA calculation formula: The Confederation of Central Government Employees and Workers has appealed to the government to make changes in the formula of DA (dearness allowance) calculations for employees and pensioners so that every three months can get allowance according to inflation. In a letter to the Union Cabinet Secretary, the Confederation General Secretary SB Yadav urged to improve the calculation of dearness allowances (DA) and inflation relief (DR) respectively for employees and retired employees.

DA calculation method is inequality

This letter mentions inequality in the DA Calculation method of government employees working in different departments. The DA calculation formula for employees working in 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 an average of 12 months should be replaced at an average of three months. That is, a change in dearness allowance should be made so that the employees of other departments, like the employees working in public sectors and banks, continue to get compensation every three months according to the actual price increase.

DA Calculation Formula for PSU employees and other 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

Emphasizing the matter of bringing equality in the calculation method, the bank’s DA written in the letter changes every three months. In this way, the central government employees are being denied 0.9 percent DA of six months. The way bank and LIC workers get point-to-point DA, we should also get DA in that way.

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