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HomeBusinessWork news: This is the formula for dearness allowance, calculate your salary...

Work news: This is the formula for dearness allowance, calculate your salary sitting at home

The wait for the central employees is over. Crores of employees will now get increased salary from the month of September. It is being told that the government has agreed to pay the installment of Dearness Allowance for January and July 2020 and January 2021, by adding it with the installment of July this year, till September. Due to which the salary will now increase from September. Let us tell you that the Central Government has decided to remove the ban on Dearness Allowance (DA) of Central employees. Along with this, the government has also agreed to remove the moratorium on dearness relief for pensioners.

Shivgopal Mishra, General Secretary, Central Employees Organization said that on June 26 and 27, a meeting of the National Council was held in the North Block. Khai leaders were also involved in this meeting. In this meeting, about 28 important issues were discussed in detail and it has been decided that for the last one and a half years, three installments of their dearness allowance for January 2020, July 2020 and January 2021, which were frozen by the government. They will be paid in the month of September 2021 including arrears of July and August 2021 by adding it with the installment due in July 2021.

Central employees are getting 17 per cent DA. But, last year in January 2020, there was an increase of 4 percent. Then in June 2020, dearness allowance was increased by 3 percent. Apart from this, DA has also increased by 4 percent in January 2021. Now dearness allowance will reach 28 percent. This will directly benefit more than 52 lakh employees and 60 lakh pensioners. There will be a bumper increase in the salary of the employees. At the same time, the pension of pensioners will also increase.

What is Dearness Allowance?Dearness allowance is such money, which is given to government employees to improve their standard of living. This money is given so that even after rising inflation, there is no difference in the standard of living of the employee. This money is given to government employees, public sector employees and pensioners. It started during the Second World War. At that time, this money was given to the soldiers apart from the salary for food and other facilities. At that time it was called Food Dearness Allowance or Dearness Food Allowance. Dearness Allowance was first introduced in India in 1972 from Mumbai. After this, the Central Government started giving dearness allowance to all the government employees.

How is Dearness Allowance calculated?There is a formula for the calculation of dearness allowance. This is the formula for central employees [(पिछले 12 महीने के ऑल इंडिया कंज्यूमर प्राइस इंडेक्स (AICPI) का औसत – 115.76)/115.76]×100. Now if we talk about Dearness Allowance of people working in Public Sector Units (PSU), then the method of its calculation is- Dearness Allowance Percentage = (Average of Consumer Price Index of last 3 months (Base Year 2001=100)- 126.33))x100

What is All India Consumer Price Index (AICPI)?There are two types of inflation in India. One is retail i.e. retail and the other is wholesale inflation. Retail inflation rate is based on the prices offered by ordinary customers. It is also called Consumer Price Index (CPI).

Do you have to pay tax on dearness allowance also?Dearness allowance is fully taxable. Under the Income Tax rules in India, separate information about dearness allowance has to be given in the income tax return. Meaning the amount you get in the name of Dearness Allowance is taxable and tax will have to be paid on it.

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