Dearness allowance meaning

By Express News Service VIJAYAWADA: The State government approved the proposal to implement the Guarantee Pension Scheme (GPS) by replacing the Contributory Pension Scheme (CPS) for government employees.The Cabinet meeting, chaired by Chief Minister Y S Jagan Mohan Reddy at the Secretariat on Wednesday, cleared the draft GPS Bill. Under the GPS, pensioners would receive 50% of their last drawn salary as pension as against 20.3% of their basic salary under the CPS. The decision was taken to ensure government employees get better benefits post their retirement. The new bill has been drafted in a way to gradually increase the Dearness Allowance (DA) for government employees without reducing the 50% post-retirement pension. Among other major policy decisions, the Cabinet approved regularisation of 10,117 contract employees, working in various departments, who had completed five years in service by June 2, 2014. Though officials had recommended that the cut off date for regularisation of service be fixed as 10 years (by June 2, 2014), the Chief Minister took a decision to slash it to five years. The Council of Ministers decided to constitute the 12th Pay Revision Commission by increasing House Rent Allowance (HRA) from 12% to 16% for government employees working in district headquarters and increasing the Dearness Allowance (DA) by 2.73%. Explaining the difference between CPS and GPS, Information and Public Relations Minister Ch Srinivasa Gopala Krishna told the reporters that ...

Dearness Allowance (DA) is an important component of the salary of employees in India. It is a type of allowance that is provided by the employer to employees to counteract the impact of inflation on their salaries. In this blog, we will explain the meaning, calculation, and importance of Dearness Allowance. Table of Contents • • • • • • • • • What is Dearness Allowance (DA)? Dearness Allowance is a cost of living adjustment allowance that is given to employees in India to adjust their salaries according to the inflation rate. The allowance is given to employees to maintain their purchasing power parity. The DA is calculated as a percentage of the basic salary of an employee and is adjusted twice a year, usually in January and July. How is Dearness Allowance (DA) calculated? The calculation of Dearness Allowance is based on the All India Consumer Price Index (AICPI) prepared and released by the Government of India. The AICPI is a measure of the change in the price of a basket of goods and services consumed by households. The calculation of DA is done by multiplying the percentage increase in the AICPI by a factor called the conversion factor. The conversion factor is determined based on the recommendation of the 7th Central Pay Commission. As of now, the conversion factor stands at 2.57. So, the formula for calculating the Dearness Allowance is: DA = ( (Average of AICPI for the past 12 months – 261.42) * 100) / 261.42 * 2.57 The value of the conversion factor may change ...

What is DA? Dearness allowance means that all public sector employees, private sector employees, government employees, etc., receive basic salaries and a fixed percentage of their basic salary to balance the increase in living costs. Along with several other allowances, this DA is added to the basic salary in the take-home pay. Thus DA or Dearness allowance is an important part of the monthly salary. So let’s begin with a simple study of DA. What is Dearness Allowance? Dearness Allowance or DA means that the government pays its pensioners, employees, etc., a fixed amount as a percentage of the employee’s base salary to balance the inflation impact. The increasing prices are market-dependent and, despite governmental measures used to control the inflation rate, such DA adjustments are needed to offset higher living costs. DA is location-based and varies over the urban, rural, or semi-urban towns and cities. Thus the effective salary of an employee plus such DA helps offset the increasing prices and is constantly increased with larger cities getting higher dearness allowances than the smaller ones. How to Calculate DA in Salary? Employees receive DA to protect against rising prices in a particular FY- financial year. DA is calculated bi-annually or twice a year (i.e., in July and January). The Government changed the DA calculation formula in the year 2006. At present, the DA is calculated by the below formula, as mentioned in the next section. What is DA in Salaryfor Central...

Dearness Allowance (DA) is an important component of the salary of employees in India. It is a type of allowance that is provided by the employer to employees to counteract the impact of inflation on their salaries. In this blog, we will explain the meaning, calculation, and importance of Dearness Allowance. Table of Contents • • • • • • • • • What is Dearness Allowance (DA)? Dearness Allowance is a cost of living adjustment allowance that is given to employees in India to adjust their salaries according to the inflation rate. The allowance is given to employees to maintain their purchasing power parity. The DA is calculated as a percentage of the basic salary of an employee and is adjusted twice a year, usually in January and July. How is Dearness Allowance (DA) calculated? The calculation of Dearness Allowance is based on the All India Consumer Price Index (AICPI) prepared and released by the Government of India. The AICPI is a measure of the change in the price of a basket of goods and services consumed by households. The calculation of DA is done by multiplying the percentage increase in the AICPI by a factor called the conversion factor. The conversion factor is determined based on the recommendation of the 7th Central Pay Commission. As of now, the conversion factor stands at 2.57. So, the formula for calculating the Dearness Allowance is: DA = ( (Average of AICPI for the past 12 months – 261.42) * 100) / 261.42 * 2.57 The value of the conversion factor may change ...

By Express News Service VIJAYAWADA: The State government approved the proposal to implement the Guarantee Pension Scheme (GPS) by replacing the Contributory Pension Scheme (CPS) for government employees.The Cabinet meeting, chaired by Chief Minister Y S Jagan Mohan Reddy at the Secretariat on Wednesday, cleared the draft GPS Bill. Under the GPS, pensioners would receive 50% of their last drawn salary as pension as against 20.3% of their basic salary under the CPS. The decision was taken to ensure government employees get better benefits post their retirement. The new bill has been drafted in a way to gradually increase the Dearness Allowance (DA) for government employees without reducing the 50% post-retirement pension. Among other major policy decisions, the Cabinet approved regularisation of 10,117 contract employees, working in various departments, who had completed five years in service by June 2, 2014. Though officials had recommended that the cut off date for regularisation of service be fixed as 10 years (by June 2, 2014), the Chief Minister took a decision to slash it to five years. The Council of Ministers decided to constitute the 12th Pay Revision Commission by increasing House Rent Allowance (HRA) from 12% to 16% for government employees working in district headquarters and increasing the Dearness Allowance (DA) by 2.73%. Explaining the difference between CPS and GPS, Information and Public Relations Minister Ch Srinivasa Gopala Krishna told the reporters that ...

DA means Dearness Allowance is a component of salary structure in How is Dearness Allowance is Calculated? Since DA is paid to the employees to balance price rise in a financial year, DA is calculated twice a year – January and July. DA is calculated using the following formula: For Central Government Employees: % of DA = x 100 Dearness Allowance under Income Tax Dearness Allowance is fully taxable for salaried employees. If any employee is provided with rent-free accommodation from an organization that is unfurnished, it becomes the part of the salary where all other perquisites are met. It forms the retirement benefit salary of the employee. Types of Dearness Allowance: • Industrial Dearness Allowance (IDA) – Applies to Public Sector employees • Variable Dearness Allowance (VDA) – Applies to Central Government Employees

What is DA? Dearness allowance means that all public sector employees, private sector employees, government employees, etc., receive basic salaries and a fixed percentage of their basic salary to balance the increase in living costs. Along with several other allowances, this DA is added to the basic salary in the take-home pay. Thus DA or Dearness allowance is an important part of the monthly salary. So let’s begin with a simple study of DA. What is Dearness Allowance? Dearness Allowance or DA means that the government pays its pensioners, employees, etc., a fixed amount as a percentage of the employee’s base salary to balance the inflation impact. The increasing prices are market-dependent and, despite governmental measures used to control the inflation rate, such DA adjustments are needed to offset higher living costs. DA is location-based and varies over the urban, rural, or semi-urban towns and cities. Thus the effective salary of an employee plus such DA helps offset the increasing prices and is constantly increased with larger cities getting higher dearness allowances than the smaller ones. How to Calculate DA in Salary? Employees receive DA to protect against rising prices in a particular FY- financial year. DA is calculated bi-annually or twice a year (i.e., in July and January). The Government changed the DA calculation formula in the year 2006. At present, the DA is calculated by the below formula, as mentioned in the next section. What is DA in Salaryfor Central...