The increase in rate of dearness allowance to be paid to Central Government employees and Dearness relief to Central Government Pensioners has to be approved by Cabinet Committee (CCEA) every year. The meeting of the Cabinet Committee on Economic Affairs usually take place on Thursday of every week. But as far as DA is concerned it gets its approval by CCEA in its Meeting which will be held by the second or third week in the month of March and September. The rate of Dearness Allowance has been increased twice a year with effect from First January and First July of the particular year respectively. The Decision on enhancement of dearness allowance with effect from 1st January will be taken by the Cabinet Committee in the second or third week of the Month of March. Like this the increase in the rate of dearness allowance to be paid to Central Government employees with effect from 1st July of every year will get its approval by CCEA by the second or third week in the month of September.
Last year, on 23rd of March 2012, Thursday of the fourth week, the Union Cabinet gave its approval to release an additional installment of Dearness Allowance (DA) to central government employees and Dearness Relief (DR) to pensioners w.e.f. 1.1.2012 representing an increase of 7% over the rate of 58% at that time to compensate for price rise.
Now as per the Average AICPI Numbers for Industrial workers for the past 12 months from January 2012 to December 2012, it is arrived that the rate of Dearness Allowance to be increased over existing rate of 72% will be 8% and total 80% of the Basic pay (band pay + Grade pay) will be paid as Dearness Allowance to all the central government employees with effect from 01-01-2013. So let us hope that the Union Cabinet may give its approval for increasing the rate of dearness allowance probably in its next meeting which is to be held on 8th March or 15th March 2013.