Insurance employee of Public Sector company can check the latest DA rates effective from 01.11.2020, Find the dearness allowance to be increased and existing IDA for LIC / OIC / UIC / NIC / NIA employees…
Employees who are in a public sector entity and under Insurance (Life or General Insurance) do have various components that get added with their Basic salary, and the Dearness Allowance is one such component, which is a growing part of salary based on the Consumer Price Index Numbers announced by Government of India every month and calculation of DA for Insurance employees will be quarterly.
Dearness Allowance is an important component of General and Life Insurance employee salary, as this is a compensatory allowance or amount in the salary does make a good benefit to compensate the price index, to manage the cost of living and the location of employment which does make much effort in cost of living adjustment.
As per the current pay revision, DA rates of insurance employee may be revised for each 3 months (February, May, August and November) of every year as per the calculation made according to All India Consumer Price Index Numbers, Let’s check the new rates.
Insurance Employee DA Rates
|Period||No: of Slabs for this Quarter||% of DA Increased / Decreased|
|01.11.2020 to 31.01.2021||43.5 (Expecting)||4.4 (Expecting)|
|01.08.2020 to 31.10.2020||14||1.4|
The Dearness Allowance is calculated differently based on the employment considerations of an employee, and thus, the DA for the central public Sector employee does differ and calculated as shown below, and DA is calculated with the All India Consumer Price Index which is from 1996 and as per the pay revision as below.
Insurance Employee Dearness Allowance Calculation Formula
- Average of AICPIN Numbers for 3 months
- Total CPI = Average AICPIN * 4.93*4.63
- Total Points = Total CPI – 4708
- Total Slabs for DA Payable = Total Points / 4
- Net Increase of DA Slabs for this quarter = Total Slabs- Previous Paid Slabs.
Public Sector Insurance Companies List
- Life Insurance Corporation of India (LIC)
- General Insurance Corporation of India (GIC)
- The New India Assurance Company Limited
- United India Insurance Company Limited (UIIC)
- The Oriental Insurance Company Limited (OICL)
- National Insurance Company Limited (NIC)
- Agriculture Insurance Company of India Limited
The above mentioned new / old DA rates shall be applicable for all the employees of the above Public Sector companies of Central Government under IRDA.