3% Static Dearness Allowance and Dearness Relief to CG Employees and Pensioners

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Static Dearness Allowance and Dearness Relief – What are the reasons that the Dearness Allowance (DA) and Dearness Relief (DR) of Central Government employees have remained static at a 3 percent increase?

Government of India
Ministry of Finance
Department of Expenditure

Rajya Sabha
Unstarred Question No. 1477
To be answered on Tuesday, 15th March 2022
Phalguna 18, 1943 (Saka)

Static DA/DR

1477:: Shri Naranbhai J. Rathwa:
Will the Minister of Finance be pleased to state:

(a) whether ii is a fact that India’s retail inflation including food inflation is increasing for the past one year;

(b) If so, what are the reasons that Dearness Allowance (DA) and Dearness Relief (DR) of Central Government employees have remained static at a 3 percent increase;

(c) whether the inflation rate of the last two quarters of 2021 have shown an increase in prices of various commodities; and

(d) if so, whether Government would consider giving DA/DR in accordance with the prices and would not maintain DA/DR al static at 3 percent?

Answer

Minister of State in the Ministry of Finance (Shri Pankaj Chaudhary)

(a) Yes Sir, details of the retail inflation rate and food inflation are given in Annexure-I ;

(b) Dearness Allowance(DA) and Dearness Relief (DR), to Central Government employees and pensioners respectively, is calculated on the basis of the rate of inflation as per the All India Consumer Price Index for Industrial Workers (AICPl-IW), released by Labour Bureau, M/o of Labour and Employment;

(c) The information in respect of the retail inflation rate for the last two quarters of 2021 is:

(d) Does not arise in view of (b) above.

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All India year on year inflation rate is based on CPI for the combined sector (Base Year 2012=100)