What is Dearness Allowance and why it is paid and on what basis it is paid, factors influencing dearness allowance. In general dearness allowance is being paid as percentage of basic, this is to adjust payments against inflation. Yeah this is where Consumer Price Index (CPI) comes in to picture.
Ok, For general information, What is Inflation, In simple words, Inflation means increase in the price of the goods you purchase. This can be in majority for three reasons. If the government prints more money without any control, there will huge flow of currency among the people which will result huge demand for limited supply of goods, resulting raise of prices for the same goods.
Industrial Dearness Allowance(IDA) rates are based on All India Consumer Price Index (IW) average for the above said specified months given, and the BSNL IDA rates of Employees as per the list is increased / decreased for the same in that period with new rates.
BSNL Employees IDA Rates List from 1st Pay revision(01.01.2007)
|Effective from||IDA Rate %||% Raised from Previous||Effective from||IDA Rate %||% Raised from Previous|
|January 2015||100.3||2.2||1st April 15||100.5||0.2|
|July 2015||102.6||2.1||October 15||107.9||5.3|
So, have a look about the old BSNL IDA Rates given for employees from the date of BSNL PSU formation day on 1st October 2000, to the day of Ist pay revision effective from 1st January 2007, which is a big happiest moment for BSNL Employees. For the above mentioned expected IDA Pay Scale DA rates, orders will be issued after the confirmation of price index number news on 31.12.15 only, i.e. January 2016 BSNL IDA Rates.