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The Himachal Pradesh Government hiked the dearness allowance (DA) by Three Percentage (3%) Points for All the Himachal Pradesh State Government Employees. With this hike Latest DA Order, Himachal Pradesh State Government Employees and Pensioners will be paid 12 percent of their basic salary as DA. Dearness allowance is a component of salary paid to individuals to compensate for inflation. For All Government Employees, the DA is revised twice annually – Once in January and Another in July. All the Government Employees/Officers should Read the Notification.

Dearness Allowances – DA Order for January, 2019

Brief Description of Notification is Here First On

Meaning of Dearness Allowances :

As per Income Tax Act, ” The Dearness Allowance (DA) is a cost of living adjustment allowance paid to government employees, public sector employees (PSE) and pensioners in India “.

Dearness Allowance is paid by the government to its employees as well as a pensioner to offset the impact of inflation. The effective salary of government employees requires constant enhancement to help them cope up with the increasing prices. Despite several measures by the government to control the rate of inflation, only partial success has been achieved because the prices move according to the market. It, therefore, becomes essential for the government to shield its employees from the adverse effects of inflation. As the impact of inflation varies according to the location of the employee, dearness allowance is calculated accordingly. Thus, DA varies from employee to employee based on their presence in the urban, semi-urban or rural sector.

Important Useful Links :

DA Order – Himachal PradeshDA Rate Official NotificationOrder Date
DA Order from January, 201912% Click Here 21-Aug-2019
DA Order from July, 20189% Click Here 18-Feb-2019
DA Order from January, 20187% Click Here 27-Oct-2018
DA Order from July, 2017 5% Click Here 12-Jan-2018
DA Order from January, 20174% Click Here 11-Sep-2017
DA Order from July, 20162% Click Here 01-Apr-2017
DA Order from January, 20160% Click Here 03-Oct-2016

How to Calculate DA ?

✔ Formula for calculating Dearness Allowance for Central government employees after 1.1.2006 is :

Dearness Allowance %= {(Average of AICPI(Base year 2001=100) for the past 12 months – 115.77)/115.77}*100

✔ Formula for calculating Dearness Allowance for Central public sector employees after 1.1.2007 is :

Dearness Allowance %= {(Average of AICPI(Base year 2001=100) for the past 3 months – 126.33)/126.33}*100

✔ Dearness allowance increases twice a year for the Government Employees in the month of January or July of a particular year, once the AICPI(IW) for a particular month is published by the Government, whereas for PSU employees it is declared quarterly by DPE (Department of Public Enterprise).