Dearness Allowance March 2010 – Increase of 8% announced

The Central Government today announced the Dearness Allowance of 8%. If this increase is included the DA will increase to 35%.

The calculations for the DA are dependent on the All India Consumer Price Index Number for Industrial Workers (CPI-IW) on base 2001=100.

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.

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