Whether 0.524% DA Ratio by PRC 2015 recommendation-gain or loss ?

After the announcement of 43% fitment by Andhra Pradesh and Telangana State Governments to its employees in 10th PRC (i.e., PRC 2015), it has been a hot topic among employees on calculating how much benefit they are getting from this PRC. One of the burning topics is also that the 0.524% DA (Dearness Allowance) to State Govt Employees to every 1% of Govt of India Central DA as proposed by PRC Commission is Gain or Loss ?. Some are stating and sending messages that there is huge loss as the Present DA Ratio is 0.856% looks far better than to the proposed 0.524%.. Hence apteachers.in has decided to discuss briefly on this matter with some examples.<!-more->
       First of all let us see what was stated by the PRC Commission on Dearness Allowance in its report to Govt. Dearness Allowance is a compensatory allowance to neutralize the rise in the cost of living index. 
  1. Several employees’ associations have requested for sanction of D.A. on par with Central Government employees and some of them, have requested for equal rate of D.A. on par with Central Government employees. The Government of India evolved their scales by merging Dearness Allowance as on 1.1.2006, with Basic Pay. We have, as is the practice in the State, recommended merging of Dearness Allowance in Basic Pay as on 1.7.2013. 
  2. Since the Basic Pay has been worked out by us by merging Dearness Allowance at a higher level than the Government of India, the rate of Dearness Allowance sanctioned to the employees of the Government of India cannot be adopted directly in respect of the employees of the State Government. For this purpose, the State Pay Revision Commissioners have been recommending a conversion formula, to ensure that the quantum of Dearness Allowance sanctioned is at par with what is sanctioned by the Centre. 
  3. Accordingly, this Commission recommends that Dearness Allowance be regulated at 0.524% (536:1022) 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.
Whether 0.524% DA Ratio PRC 2015 recommendation gain or loss ?

Whether 0.524% DA Ratio PRC 2015 recommendation gain or loss ?

After studying the recommendation let us see how to calculate the difference in DA Ratio as per the present and PRC Recommendation.
  • Let us assume that Your Basic is at Rs.100 on 1.7.2013 i.e., on the PRC 2015 date.
  • DA on 1.7.2013 is 63.344%, hence your New basic after merging the DA in your Old basic of Rs.100 will be Rs.100 + 63.344 = Rs.163.344. For details see the table below.
Description In Old Pay (Present) In New PRC Explanation
Basic as on 1.7.13 100 163.344 DA on 1/7/13 merged to Basic
% of DA to every 1% of Central DA 0.856 0.524
10% Central DA announced w.e.f 1.1.14 8.56% (10 x 0.856) 5.24% (10 x 0.524) 10% value
Total Value of 10% DA 100 x (8.56 /100) = 8.56 163.344 x (5.24 / 100) = 8.559 Both have the same value hike
7 % Central DA announced w.e.f 1.7.14 (7 x 0.856) =5.992 % ( 7 x 0.524) = 3.668% 7% value
Total Value of 7% DA 100 x (5.992 /100) = 5.992 163.344 x (3.688/100) = 6.02 Both Equal New Pay DA slightly high
Total DA Hike 17% ( from Jan-Dec 2014 ) 17 x 0.856 = 14.552 17 x 0.524 = 8.908 17% Value
DA Hike Value in Rs. 100 x 14.552 / 100 = 14.55 163.344 x 8.908 / 100 = 14.55 Same Values
  • From the above examples it is very much clear that there is NO LOSS on fixing the DA Ratio at 0.524%, more over it will be a gain as the 43% fitment is also going to be added to the Basic as on 1.7.13.
  • Hence there is NO Loss or Gain at present.
What happens when Central Government announces Central PRC in 2016 or 2017:
Is it a point to be discussed ?. When Central Govt announces its PRC, then the State Govt may also change its Ratio basing on the situations and calculations at that time. It is out of the topic to discuss this matter at present as the Central PRC will be announced after 2 Years.
  • So what is your opinion... Is 0.524% DA Ratio recommendation by PRC 2015 Gain or Loss ?. Let us know, if we have missed any thing in doing calculations..Do comment...

52 comments:

  1. Ali you r very genius sir.thanks for clear cut clarification

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  3. Very nice... Explanation... No gain... No loss..

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  4. Thanks to all for your views and comments.... @Mohd Rafi, @BangaRam @Diakar @Chiranjeevi @G Anil Kumar Reddy

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  5. It's fine. some of my doubts are cleared!!!!

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  6. OF COURSE .. BUT THIS IS FOOLISH ... increase of our salaries based on DA percentage only.. so this calculations only for self satisfaction... we are loosing 35-38 %DA in the coming 5 years...

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    1. if we agree these kind of calculations our unions did nothing in PRC fitment...

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  7. it completely wrong because you calculate da for new prc pay in old pattern da% and new pattern da %
    for a pay 33200 we get 2842 in old pattern for the same pay 33200 we get da 1740

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    1. calculation is wrong because compare with new pays

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    2. Oh... Oh..
      It is completely wrong to Calculate the OLD DA% on new basic in PRC.. You can only calculate Old DA on Old Basic, New DA on New Basic...

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  8. Sir, I appreciate your concentration on the job. You are absolutely right. For newly established Andhra Pradesh state our CM Mr. Chandra Babu did excellent dare step to give 43 % fitment with regard to present situation. There will not be any problem with regard to DA as you said and it will be again changed from Jan-2016 as per 7 CTC of central government. Thank you very much for your website and informations available on the site

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  9. గత 5 ఏళ్ళలో కేంద్రం 74% DA ప్రకటించింది.
    '1% కేంద్ర DA = 0.856% రాష్ట్ర DA' సూత్రం ప్రకారం అది 63.344% అయింది.
    రాష్ట్రం 43% fitment ప్రకటించడం వలన మన basic 106.344% పెరిగింది.

    ఒకవేళ గడిచే 5 ఏళ్ళలో కూడా కేంద్రం 74% DA ప్రకటిస్తుంది అని అనుకుందాం,
    అప్పుడు కూడా రాష్ట్రం 43% fitment ప్రకటిస్తే మన basic 106.344% పెరగాలి కదా! మరి పెరుగుతుందా? పెరగదు. ఎందుకు?
    ఎందుకంటే, '1% కేంద్ర DA = 0.524% రాష్ట్ర DA' సూత్రం ప్రకారం, కేంద్రం ప్రకటించిన 74% DA రాష్ట్రంలో 38.776% అవుతుంది.
    రాష్ట్రం 43% fitment ప్రకటించినా కూడా మన basic 81.776% మాత్రమే పెరుగుతుంది. మరి ఇది ఏ విధంగా ' no gain no loss' అవుతుంది?

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    1. you are right.. but pi coments chesinollaki enduku ardam kavatledu mana loss???? oo god take them out form deep sleep .

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  10. నేను చెప్పిన పై విషయాన్నే detail గా చూద్దాం :
    (1). ' కేంద్ర 1% DA = 0.856% రాష్ట్ర DA ' సూత్రం ప్రకారం,
    Old basic. = 10000. అనుకుందాం
    DA(63.344%) = 6334
    Fitment(43%) = 4300
    NEW BASIC. = 20634. అవుతుంది

    (2). '1% కేంద్ర DA = 0.524% రాష్ట్ర DA' సూత్రం ప్రకారం,
    Old basic. = 10000
    DA(38.776%) = 3878
    Fitment(43%) = 4300
    NEW BASIC. = 18178 అవుతుంది
    -------------------
    తేడా (2)-(1)=20634-18178=2556
    దీన్ని శాతంలో చెప్పాలంటే 11.903% తక్కువ.
    అంటే రాష్ట్రం వచ్చే PRC లో 43% fitment ఇచ్చినా కూడా అది 11.903% తక్కువ, అంటే 37.9% అవుతుంది.

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    1. PRC is meant for leaving the old pay scales. if we get the same benifit in new PRC also.. then what is the need of a PRC? lets take a short example.... if the ratio is 1=0.524 for every 10% = 5.240% for evry 1000 basic 52.40 rupees raise... where as if the ratio is 0.856 for every 10%=8.560% for every 1000 basic 85.60rupees...

      >For 2019 PRC also the DA ratio is crucial... let us assume that every six months raising in central DA is 6% so 10 time to July ,2019 is 60%... our state DA will be 31.440 (@0.524). so THISTLES is the fixing DA at 2019. if it is 0.856 it will be 51.360%. the difference is huge... so, we have a right to ask for better DA%..

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    2. It looks like.. Even Not a single ball is thrown in 2015 World Cup, but You are thinking about 2019 Cricket world Cup..
      One more thing,. Show some maturity While applying DA%... You have applied New DA % old Basic...

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  11. Dear sirs, you have to remember one point. when comparative any prc the basic is doubling automatically and there is no question of da portion. why you are talking only on da ? why you are not talking of hra portion which was doubled to present one. one thing sir, the gain will not be there for each and every point of the basic, da, hra and etc. some where it will be high gain some where it be less gain. So, you have to think overall benefit what you got. My dear sirs please dont think other wise. You have to get benefit of money. where ever it is, whether it is in the form of basic or da or hra final output is that. thanks for all the comments and calculations.

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    1. You are right Dinesh Sir.. I agree with you

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  12. "ఇది మరీ విచిత్రం. ఆదివారం కూడా జీతం ఇవ్వాలా? ఎంత అన్యాయం! పని చేసిన కాలానికి జీతం ఇస్తాం.మిగిలిన 16 గంటలకు,ఆదివారాలకు కూడా జీతం అడుగుతారా? Show some maturity while asking...... "
    ఇలాంటి మాటలు యజమానులే అంటారనుకున్నా ఇన్నాళ్ళు. ఉద్యోగులు కూడా అంటారని ఇంతవరకు నాకు తెలియదు. ఎక్కువ DA ఇవ్వండని అడగడం కూడా తప్పేనా? పైగా " ఎక్కువ HRA గురించి అడగకుండా DA గురించే ఎందుకు అడుగుతున్నారు" అట. ఎవడొద్దొన్నాడు.ఎక్కువ HRA గురించీ అడుగుదాం, ఎక్కువ DA గురించీ అడుగుదాం.

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    1. inakenduku sir mottom rastranni ammesi meeku da hra immandam i appreciate your consent sir god bless you government has not sanctioned any thing if you ask if your leads beg then they will sanction please note this point

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    2. try to salute the leads for begging the government for all the result on behalf of all of you other

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    3. GOVERNMENT OF ANDHRA PRADESH
      ABSTRACT
      ALLOWANCES - Dearness Allowance – Dearness Allowance to the State Government
      Employees from the 1st January, 2004, 1st July, 2004 and 1st January, 2005 in the
      Revised Pay Scales 2005 – Sanctioned – Orders – Issued.
      FINANCE (PC-I) DEPARTMENT
      G.O.(P).No.214 Dated: 30-8-2005.
      Read the following:
      1. G.O.Ms.No.734, G.A (Spl.A) Department, dated 17-2-2004.
      2. G.O.Rt.No.960, G.A.(Spl.A) Department, dated 1-3-2004,
      3. G.O.(P).No.588, Finance (PC-I) Department, dated 7-8-2004.
      4. G.O.(P).No.4, Finance (PC-I) Department, dated 10-1-2005.
      5. G.O.(P).No.161, Finance (PC-I) Department, dated 22-6-2005.
      6. G.O.(P).No.213, Finance (PC-I) Department, dated 27-8-2005.
      * * *
      O R D E R:
      In the Government order first read above, orders were issued constituting a
      Pay Revision Commission to look into the Pay Scales of the State Government
      employees. In the Government order second read above, terms of reference of the Pay
      Revision Commission were issued. In the Government orders 3rd, 4th and 5th read above
      orders were issued revising the rates of Dearness Allowance in the Revised Pay Scales
      1999 from 1st January, 2004, 1st July, 2004 and 1st January, 2005.
      2. The Pay Revision Commission submitted report on 30-6-2005. Among other
      things, the Pay Revision Commission evolved new pay scales by merging Dearness
      Allowance which existed on 1-7-2003. It also recommended for 100% neutralization to
      all the employees and also to sanction Dearness Allowance at 0.942% of pay for every
      1% of Dearness Allowance sanctioned to the employees of the Government of India
      from 1st January, 2004 onwards.
      3. Government have accepted the above recommendations vide Government
      order 6th read above and accordingly, in partial modification of the orders issued in the
      Government orders 3rd, 4th and 5th read above, hereby sanction Dearness Allowance in the
      Andhra Pradesh Revised Pay Scales, 2005 which came into existence from 1-7-2003 with
      monetary benefit from 1st April, 2005 at the rates indicated below.
      -----------------------------------------------------------------------------------
      Date of effect Revised rates of DA (Cumulative)
      -----------------------------------------------------------------------------------
      1-1-2004 1.884%
      1-7-2004 4.710%
      1-1-2005 7.536%
      -----------------------------------------------------------------------------------
      4. The Dearness Allowance sanctioned in para 3rd above shall be payable to all
      the Government employees, employees of Local Bodies and Aided Institutions including
      Aided Polytechnics, Work Charged employees who are drawing pay in the Revised Pay
      Scales, 2005.
      5. These orders are not applicable to those employees who are continuing to
      draw pay in the Revised Pay Scales 1999 and also to the Teachers of the Affiliated
      Degree Colleges and Universities drawing pay in the Revised University Grants
      Commission/All India Council of Technical Education/Indian Council of Agricultural
      Research Scales of 1986/1996.
      6. The Dearness Allowance shall be claimed along with the pay fixation in the
      Revised Pay Scales, 2005 and the Dearness Allowance already sanctioned in the
      Government orders 3rd, 4th and 5th read above shall be notionally adjusted upto 31-3-2005
      and the monetary benefit shall however be from 1-4-2005 only. The arrears from 1-4-
      2005 to 31-7-2005 will be credited in to the General Provident Fund Accounts of the
      employees for the current financial year i.e. 2005-06. The revised rates of Dearness
      Allowance shall be paid in cash along with the salary in the Revised Pay Scales 2005
      from August, 2005.
      7. The G.O. is available on Internet and can be accessed at the address
      http://www.aponline.gov.in.
      (BY ORDER AND IN THE NAME OF THE GOVERNOR OF ANDHRA PRADESH)
      RANJEEV R. ACHARYA
      SECRETARY TO GOVERNMENT (FP

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  13. Read poin no 2 in the GO above of PRC 2005 DA GO copy DA rate is .942%

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  14. గత PRC లలో DA లెక్క ఈవిధంగా లేదు కదా సర్...
    PRC 2010 లో Jul-08 నాటి DA 42.39 ప్రకారం 0.856 కాకుండా 0.661 ఉండాలి గదా?

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  17. Jul-08 ....42.39
    Jan-09 51.81
    Jul-09 60.288
    Jul-10 73.476
    Jul-10 88.548
    Jan-11 99.852
    Jul-11 111.156
    Jan-12 122.46
    Jul-12 133.764
    .....
    ....
    PRC-2010 లో PRC-2005 వారికి ఇది ఏ రేషియో ప్రకారం పెంచబడింది?

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  18. why my postings r not published ?

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  19. Zakir garu ...My new pay as on 1.7.2013 was 33200.
    So D.A :33200 X 0.856 = 2844,
    33200 X 0.524=1741
    ------------------------------
    Difference = 1103
    ------------------------------
    If i am wrong ,plz give me explanation.

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    3. Dinesh kumar can you explain in telugu :
      CAN ANY ONE EXPLAIN THIS TEXT (EXTRACTION OF PRC REPORT VOLUME-I)
      07.05. Several employees’ associations have requested for sanction of
      D.A. on par with Central Government employees and some of them, have
      requested for equal rate of D.A. on par with Central Government employees.
      The Government of India evolved their scales by merging Dearness Allowance
      as on 1.1.2006, with Basic Pay. We have, as is the practice in the State,
      recommended merging of Dearness Allowance in Basic Pay as on 1.7.2013.
      Since the Basic Pay has been worked out by us by merging Dearness Allowance
      at a higher level than the Government of India, the rate of Dearness Allowance
      sanctioned to the employees of the Government of India cannot be adopted
      directly in respect of the employees of the State Government. For this purpose,
      the State Pay Revision Commissioners have been recommending a conversion
      formula, to ensure that the quantum of Dearness Allowance sanctioned is at par
      with what is sanctioned by the Centre.
      07.06. Accordingly, this Commission recommends that Dearness
      Allowance be regulated at 0.524% (536:1022) 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.

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  20. What about the DA OF EVERY 6 MONTH

    IF CENTRAL GOVT IS GIVING 10% AS DA
    WE WILL NOW NEW DA AS 5.24% previvously it was 8.32%
    So we will how to suffer every six month DA

    Play have a look at this point

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  22. zakir garu ante naaku chala gowravam talli.. you dont irritate... first behave your self when comment about a particular person in private comment box.. nenu mee laga cheap ga matladalenu.. thank you

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  23. Ayyaa.....andaroo cheppindi vinnaaka.....nenu koodaa okkati chepthaanu....meelo kondariki ippatikippudu nastam kanipinchaka povachu gaanee, next PRC time ki merge ayye DA chaala thakkuva untundi.....appudu fitment daadaapu 100 percent isthe....thappa....appudu vache nastam evaru poodchaleru......evaro okaayana HRA koodaa peruguthundi kadaa annaru....rent peragatledaa....yearly 10-15 percent penchuthaaru kadaa....konchem aalochinchandi.........

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  24. guruvugaru mee rannadi correct meeku total vocche salary ni choosukovali kani prati component ki meeru lekkalu veyyadam sarikadu suppose oka employee ki 55000 ee roju vostu vunte ataniki 10000 daggara perugutondi mari every year meeku da + hra (on basic) perugutu every 5 years idi extra mari inka takkuna anna feeling meeku vunnadi koncham peddamanasu chesukoni meeru alochinchandi ...................... meeranna point ki voddam ee roju vunna paristitini batti central government da lekka repu 2016 jan nundi adi defiant ga perugutundi ee one year matrame meeku takkuva da anna problem ante exactly 2016 jan nundi kadu kotta pay scales central government marchi nappudu................. kabatti zakir sir cheppindi aksharala nijam manam manaki entha perugondi ani alochanchali kada entha nastapotunnamu ani kadu tappudu artham chesukokandi koncham peddamanasuto alochinchandi

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  25. thank you so much for your response....I will try to think over it positively....

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  26. well said but it should be changed when central govt prc announced

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  27. Yes Mr Kanthareddy garu aksharala janaury - 2016 nundi vocche central government 7th ctc lo entha percentage aite vuntundo daniprakaram 6th ctc decide chestaru adi yeppudu routine ga jarigedi kabatti mana pay scales 6th ctc batti decide ayyinavi da percentage annadi. definate ga change vuntundi there no doubt but adi yeppudu implementation chestaro appudu telusutindi ante january - 2016 effect avvali ante support january - 2017 decide aite january - 2016 nundi arrears vostai. But yedi yemaina overall ga yenta pencharu annadi alochinchali. thanks your accepting my comments

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  28. More over kukkalu chimpina vistarila vunna state ki yemi cheyyaleni nishaya stitulo kooda mana priyatama mukyamantri garu chala pedda manasuto 43 fitment iccaru asalu jeetale rani paristitulo. kabatti manam chala runapadi vunnam ee rasta mukyamantriki.

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  29. The Pay Revision is to increase the salaries but the govt of AP is giving The old Central Pay Commission Salaries, this is defined by the above example. The New Structure is not Compared by the old. The 7th CPC Entry BASIC is 18000 but AP NEW ENTRY BASIC is only 13000. At least The ANNUAL INCREMENT is not equal to the 3% in AP. Another thing is there is no impact of 7th CPC to AP employees except pension and Gratuity Calculations. So the govt of AP is giving OLD salaries of CENTRAL CPC.

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