TO KNOW PRIOR HAND
The DA rate at the time of VI pay commission is
74%.Out of this 50% was merged with basic pay w.e.f 1.1.2004 as Dearaness pay.
The DA was drawn @ 24% to Baisc pay + dearness pay .
NOW REST OF THE HISTORY !!
*
The 6th Pay Commission had recommended a Multiplication Factor of
1.74,But the Central Government chose to change it to
1.86.
* One of
the reasons for this modification was the intense pressure from various
Federations of Central Government Employees.
* Exactly how did the Government arrive at 1.86?
* Here is
an explanation how –
* Let us assume the Basic Pay, as of 01.01.2006,
as 100%. Let’s take the Dearness pay (post the 50% DA Merger) as 50%. Let us
also take into account the 24% Dearness Allowance that was given before
01.01.2006.
* If you add Basic Pay and Dearness Pay and
calculate 24% of it, then you’d get 36%. (100 + 50 = 150 / 24 x 100 = 36)
100% + 50% + 36% = 186%
*
This number is being taken for calculations as 1.86
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