Govt. employees entitled to 7% additional dearness allowance from January

SHIMLA/NEW DELHI: Central and state government employees will be entitled to 7% additional dearness allowance (DA) with effect from January 1, 2012.

This increase is on account of the proportionate rise in twelve-month moving average of Consumer Price Index for Industrial Workers (CPI-IW) as of December 2011, according to Labour Bureau sources.

The DA is revised every six months based on this average. The employees are getting 58% of basic and grade pay as DA and with 7% increase from this month the DA payable to them would be 65%.

Meanwhile, cheaper food items sharply pulled down retail inflation based on CPI-IW to 6.49% in December.

Inflation based on CPI-IW stood at 9.34% in November, according to labour ministry data released today.

Meanwhile, inflation based on the food index for industrial workers moderated to 1.97% in December from 7.61% in November.

As per the data, the CPI-IW increased by two points to 197 in December vis-a-vis the base of 100 for the year 2001.

The point-to-point variation in the index measures the change in price levels over a period.

In December, the index recorded the maximum decrease of 8 points each in the Ghaziabad and Jamshedpur centres, followed by 7 points each in Mysore, Bokaro and Ranchi Hatia and six points in three other centres.

The index increased by 6 points in the Coonoor centre, by 4 points in Chennai and by three points in the Mercara centre.

In seven centres across the country, the index remained unchanged.

Source : The Times of India, January 31, 2012