G.O.Ms. No. 26Finance (HRM.IV) Dept. Dt. 18.03.2015
Dearness Allowance is a compensatory allowance to neutralize the rise in the cost of living index. The origin of Dearness Allowance can be traced back to the period of Second World War when it was introduced as a measure to protect Government Employees with fixed incomes from erosion of real wages owing to rising prices. Dearness Allowance as an addition to the compensation package of Government employees has continued uninterruptedly ever since it was introduced and it can be said that this allowance has now come to stay.
Telangana state Government has been released Dearness Allowance G.O.Ms.No. 26 Finance (HRM. IV) Dept. Dt. 18.03.2015 on the recommendations of Pay Revision Commission. The pay Revision Commission submitted its report on 29.05. 2014. The Commission has recommended Dearness Allowance be regulated at 0.524% for the state Employees for every 1% of Dearness Allowance sanctioned to the Central Government employees w.e.f 01.01.2014. The Dearness Allowance is compensatory allowance to neutralize the rise in the cost of Living Index.
RPS, 2015 DA percentage recommendation connection with RPS, 2010
Dearness Allowance decides on Consumer Price Index
The Commission accordingly recommends that the DA be regulated at 0.856% (536:626) for the state employees for every 1% of DA sanctioned the Employees of Government of India w.e.f 01.01.2009
Central Index point - 536 State Index point 626
536/626 = 0.856
626 + 626 X 63.344 = 626 + 396.53344 = 626 + 396 = 1022
RPS, 2015 DA percentage
Accordingly, this Commission recommends that Dearness Allowance be regulated at 0.524% (536:1022) [536/1022 = 0.524] for the State Government Employees for every 1% of Dearness Allowance sanctioned to the employees of Government of India With effect from 1.1.2014.
Try with an Example:
Pay as on 01.07.2013 : Rs. 10,000
Central announced DA 10% for January, 2014 to July, 2014period, state employees were getting 8.56% as per RPS, 2010
DA as per RPS, 2010 : Rs. 10,000 X 8.56% = 10000X8.56/100 = Rs.856
Commission proposed DA @ 0.524% per every 1unit of Central DA
Pay after RPS, 2015 implementation by merged DA (not including fitment 43%)
Pay as on 01.07.2013 : Rs. 10000.00
DA as on 01.07.2013 in Rs. (@ 63.344) : Rs. 06334.40 (10000X 63.344/100)
Total Pay with Merged DA as 01.07.2013 : Rs. 16334.40
Central announced DA 10% for January, 2014 to July, 2014 period, state employees are going to get 5.24% as per RPS, 2015 is
DA as per RPS, 2015 : 16,334.40 X 5.24% = Rs. 855.92256
Rounded to Rs.856
DA rates in RPS, 2015
The Central Government sanctioned DA 10% on 01.01.2014, 7% on 01.07.2014 accordingly revised rates of Dearness Allowance for state Government Employees in the RPS, 2015 is 5.24% on 01.07.2014, 3.668% on 01.07.2014 cumulative DA is 8.908%. The DA shall be nationally adjusted up to 01.06.2014. For the arrears period from 02.06.2014 to 28.02.2015 G.O will be issued separately.