Dearness Allowance January 2010 Latest Updates

Posted by dreamboy_shani on March 19, 2010

Dearness Allowance January 2010 Latest Updates: The dearness allowance (DA) will see an overall increase of 35% since 1st Jan 2010 according to sources. The calculations for the DA are dependent on the All India Consumer Price Index Number for Industrial Workers (CPI-IW) on base 2001=100.

According to the confirmed sources, DA (Dearness Allowance) to 8% would be increased by 8% for all the central Government Employees which means it would be overall raised to 35% from 1 January, 2010

The government announces the All India Consumer Price Index every year depending on the existing prices of commodities. For instance the All India Consumer Price Index for Industrial Workers for October 2009 on base 2001=100 had increased by two points and went up to 165. Keeping in view the situation, the Government announced dearness allowance to cope up with the price rise. It said that with effect from 1st January 2006, the dearness allowance would be changed from 536 points in Base Year 1982=100 to 115.763 points in Base Year 2001=100.

The calculation takes place as follows. First we calculate the total of average price index over the entire year, that is, over all the 12 months. Then we calculate the average price index over the year, subtract it with 115.76 and finally calculate the difference in percentage by multiplying with 100/ 115.76.