Suggestion on Dearness Allowance for 7th Pay Commission – NC JCM STAFF SIDE
National Council JCM Staff Side suggested on the issue of Dearness Allowance in 7th Pay Commision, the existing formula of computation of Dearness allowance and its payment with effect from 1st Janauary, and 1st July may continue…
The neutralisation envisaged under the present system of computation of dearness
compensation is supposed to be cent per cent, but in reality it is not the case. Actual
consumer price index is much higher than the level at which DA is calculated on the
basis of 12 monthly average. The average is always lower than the actual cost of
The calculation of consumer price index, its basis, the basket of goods on which it is
based, are questionable and has become a matter of dispute. Since the Pay
Commission being not the forum at which these issues could be taken, we do not
propose to go into the details of this aspects.
We suggest, therefore, that the existing formula of computation of DA and its
payment with effect from 1st January, and 1st July, may continue.