Release of additional installment of dearness allowance to Central Government employees and dearness relief to Pensioners, due from 1.7.2013.

Press Information Bureau
Government of India
Ministry of Finance

20-September-2013

   The Union Cabinet today approved the proposal to release an additional installment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners with effect from 01.07.2013, in cash, at the rate of 10 per cent increase over the existing rate of 80 per cent.

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Merger Of 50% DA With Pay : Resolution adopted in INTUC Conference.

Merger Of 50% DA With Pay

   The 30th Plenary Session of Indian National Trade Union Congress INTUC  is being held in Raipur from 6-9-2013 to 9-9-2013 is concluded today. There are 4 Resolutions which are considered to be very important are adopted in this Conference.One of the four main resolution is Merger of 50% DA with Pay for central government employees. So the INTUC urges the central government to consider the demand  and accord sanction for merging 50% DA with pay. The Resolution On Merger Of 50% DA With Pay which has been adopted in 30th Plenary Session of  INTUC held in Raipur from 6-9-2013 to 9-9-2013 is given below

Resolution On Merger Of 50% DA With Pay

   The Wage structure revision for Central Government employees had been enquired into by the successive pay Commission appointed by the Government of India during the past decades and gave their reports. The Government had considered the reports and decided for implementation with certain changes and improvements.

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Dearness Allowance (DA) linked to Consumer Price Index against inflation..

   The Consumer Price Index is the main base for calculation of Dearness Allowance for the Central Government and State Government Employees and also the Industrial and Bank Employees.

   The Consumer Price Index (CPI) is calculated using following steps:

   a) Market prices are collected for 252 items by the Officials of Department of Statics and Department of Posts. These prices of that item & place are sent to Central processing unit from 78 centres all over India ( which are enclosed for your reference).

   b) The all India weights given the each category of items such as food 49.71%, housing 9.77 %, fuel 9.49% , footwear O.68%, transportation 7.5%, Medical 5.31%, Personnel care 2.92 % & Miscellaneous 26.31% total 100% . CPI points are determined using this all India weights and prices of the 252 items. (which are enclosed for your reference).

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Dearness Allowance 90% from July 2013:Central Govt. likely to announce soon.

   Ahead of festival season, Central Government will this month announce a hike in dearness allowance to 90 percent from existing 80 percent, benefiting about 50 lakh central employees and 30 lakh pensioners.

   According to official source, dearness allowance hike will be 10 percent and would be effective from July 1, this year.

   The sources further said the exact amount of dearness allowance, as a proportion of basic pay, works out to over 90 percent after factoring in the revised all India Consumer Price Index for Industrial Workers (CPI-IW) for June.

   According to revised data released on August 30, retail inflation for factory workers for June stood at 11.63 percent, higher than provisional estimate of 11.06 percent for the month released on July 31.

   Sources said that since the revised estimate for the month of June is available, the Finance Ministry would soon prepare a proposal for the purpose for seeking Union Cabinet nod.

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Payment of Dearness Allowance to Railway employees — Revised rates effective from 01.01.2013.

Government of India
Ministry of Railways
(Railway Board)

S.No.PC-VI/ 315
No. PC-VI/2008/I/7/2/1

RBE No.38/2013
New Delhi, dated 26.04.2013

The GMs/CAO(R),
All Indian Railways & Production Units
(as per mailing list)

Sub: Payment of Dearness Allowance to Railway employees — Revised rates effective from 01.01.2013.

   Please refer to this Ministry's letter of even number dated 03.10.2012 (S.No PC-VI/303, RBE No.112/2012) on the subject mentioned above. The President is pleased to decide that the Dearness Allowance payable to Railway employees shall be enhanced from the existing rate of 72% to 80% with effect from 1st January, 2013.

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No merger of D.A. but seventh pay commission likely this year.

   According to our sources in New Delhi, there is no chance of any merger of Dearness Allowance with basic pay as demanded by the associations. But the Government is considering the formation of seventh pay commission.

   The seventh CPC is scheduled to be effective from 1.1.2016 and if it is formed this year, there will be ample time to finalize it's recommendations. Moreover, if it is not effective from an earlier date, the Govt. will be free from any burden of paying arrears, which may adversely effect the fiscal situation.

   Most significantly, in the eve of general election, the Govt. may spread a "feel good" situation among the employees without having to pay an extra penny from the exchequer.

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AIRF urged Finance Minister of India to announce Payment of Dearness Allowance to Central Government Employees and Pensioners.

All India Railwaymen's Federation

No.AIRF/13

Dated: April 9, 2013

Shri P. Chidambaram,
Hon’ble Finance Minister,
Ministry of Finance,
(Government of India)
North Block,
New Delhi.

Dear Sir,

Sub: Payment of Dearness Allowance to Central Government Employees and Pensioners

   It is very unfortunate that the announcement for the payment of Dearness Allowance is being delayed badly and is creating lots of frustration among the Central Government Employees as well as Pensioners. Particularly Railway Employees, who are the prime mover of the wheel of the development and growth of the nation, they also feel frustrated because of inordinate delay in the announcement for the payment of Dearness by the Government of India(Ministry of Finance).

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Announcement of DA from January 2013: Speculation of reasons for delay.

   After implementation of recommendations of Sixth Pay Commission the Govt. has accepted the calculation of standard formula for calculation of future DA and in para 4.1.19 Sixth Pay commission has recommended that DA may continue to be sanctioned twice a year as on 1st January and 1st July payable with the salary of March and September.  After 6th CPC implementation order of DA from January of respective years was issued/declared as follows:-

15/3/2007- 6% – Thursday
07/3/2008 -6% – Monday
26/2/2009- 6% – Thursday
19/3/2010 –8% – Friday
22/3/2011- 6% – Tuesday
23/3/2012 -7% – Friday

   DA from January, 2013 is yet to be announced.  No any reason for delay is stated from any reliable sources and no exact reason can be constitute for it.  Now everyone to speculate the reason for delay in announcement.  The following main facts are presented to inspect the reasons:

1. Merger of DA with Basic Pay:  This is the first reason is everyone’s mind.

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Increase in DA to 72% with effect from July-2012.

   The meeting of the Union Cabinet, which was scheduled to consider a 7 per cent hike in dearness allowance to 80 lakh central government employees and pensioners, has been put off to tomorrow.

   “The Cabinet, CCEA (Cabinet Committee on Economic Affairs) and CCI (Cabinet Committee on Infrastructure) meetings scheduled for Friday, have been postponed,” an official announcement said.

   Cabinet meetings usually take place on Thursdays, but they have been postponed apparently in view of the rapid political developments in the aftermath of the government’s decision to hike diesel prices and operationalise its earlier move to allow foreign direct investment (FDI) in multi-brand retail.

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Grant of Dearness Allowance to the employees of the State Government w.e.f. 01.01.2012.

Fin(C)- B(7)-2/2006
Government of Himachal Pradesh
Finance (Regulations) Department

Dated Shimla-171 002, the 21st August, 2012.

OFFICE MEMORANDUM

Subject:- Grant of Dearness Allowance to the employees of the State Government w.e.f. 01.01.2012.

   In continuation of this Department’s OM of even number dated the 21st March,2012, the Governor, Himachal Pradesh, is pleased to enhance Dearness Allowance from the existing rate of 58% to 65% with effect from 01.01.2012 in respect of the regular employees of the State Government.

   2. This additional installment of Dearness Allowance of 7% (7 percent) shall be paid in cash with the salary of August, 2012 payable on 1st September,2012 and the arrears accrued from 01.01.2012 to 31.7.2012 shall be credited in the GPF Accounts of the employees with the salary of August, 2012. The interest on this account shall accrue w.e.f. 01.09.2012. In case of Government employees who have retired or who have closed GPF accounts and employees who are governed under Contributory Pension Scheme, the arrears on account of release of additional installment of DA w.e.f .01.01.2012 will be paid in cash.

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DA for central staff up 7%

   The government on Thursday announced a 7% hike in the dearness allowance (DA) of its employees to give them relief from the near double-digit inflation ahead of the festival season. Besides the five million central government employees, about four million pensioners will also stand to benefit from the decision taken by the cabinet on Thursday.

   Although the DA will increase from 51% to 58% of basic salary from July 1, employees, especially those who are in the junior scales, do not seem to be happy with the quantum.

   “The inflation index, the basis of calculating the dearness allowance, is not actually reflecting the cost of living and erosion in employees’ remuneration due to price rise,” said KKN Kutty, secretary general of the Confederation of Central Government Employees and Workers.

   The general inflation for August was at a near-one-year high of 9.78%.

   The DA and dearness relief hike will cost the exchequer Rs 7,229 crore a year, while for the remaining period of the current fiscal the implication will be Rs 4,819 crore, information and broadcasting minister Ambika Soni told reporters on Thursday.

Courtesy: www.hindustantimes.com

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Release of additional instalment of Dearness Allowance to Central Government employees and Dearness Relief to pensioners

Ministry of Finance

Release of additional instalment of Dearness Allowance to Central Government employees and Dearness Relief to pensioners

The Union Cabinet today approved release of additional instalment of Dearness Allowance to Central Government employees and Dearness Relief to pensioners as due from 01.07.2011 at the rate of 7 per cent over the existing rate of 51 per cent.
The total financial implications on account of both Dearness Allowance and Dearness Relief would be Rs.7228.76 crore per annum and Rs.4819.22 crore in the current financial year.

source-pib

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Payment of DA to the CDA pattern employees of 69 CPSEs governed by HPPC recommendations.

F. No. 2 (54))/2008-DPE (WC) GL-IV/2011

Government of India

Ministry of Heavy Industries & Public Enterprises

Department of Public Enterprises

Public Enterprises Bhawan

Block No.14, COO Complex, Lodi Road

New Delhi, the 30th March, 2011.

OFFICE MEMORANDUM

Subject: - Payment of DA to the CDA pattern employees of 69 CPSEs governed by HPPC recommendations.

   The undersigned is directed to refer to Para 2 and Annexure-IlI to this Department’s O.M. of even number dated 14.10.2008, wherein the rates of DA payable to the employees who are following CDA pattern has been indicated.

  2. The DA payable to the employees may be enhanced from the existing rate of 45% to 51% with effect from 01.01.2011.

   3. The payment of Dearness Allowance involving fractions of 50 paise and above may be rounded off to the next higher rupees and the fractions of less than 50 paise may be ignored.

   4. These rates may be made applicable in the case of CDA employees, whose pay have been revised with effect from 01.01.2006 as per DPE O.M. dated 14.10.2008.

   5. All the Administrative Ministries/Departments of the Government of India are requested to bring the foregoing to the notice of the Central Public Sector Enterprises under their administrative control for action at their end.

-sd-

(P . Michael)

Under Secretary

Source;www.dpe.nic.in

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Cabinet Committee likely to approve today 6% Dearness Allowance to Central Government Employees...

   The Union Cabinet Committee likely to release of additional instalment of 6% Dearness Allowance to Central Government Employees and Dearness Relief to Central Government Pensioners due from 1.1.2011.

   The hike in the Dearness Allowance has been done in accordance with the recommended formula in sixth Central Pay Commission. According to the calculation with last six months of All India Consumer Price Index Numbers(AICPIN) published by Labour Bureau Govt. of India, from July 2010 to December 2010, may be given 6% of additional Dearness Allowance from January 2011 to Central Government Employees and Pensioners.

   The proposed DA hike, to be approved by the Central Government today, this enhancement is taking the Dearness Allowance from 45 to 51 per cent of the basic pay and also some allowances and advances rise in 25% from the existing rates as per the recommendations in Sixth CPC.

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Central Govt. employees are likely to get 6% D.A. from January 2011

Whatever the price of onion is, the D.A will not be as sweet as July last year.
As per the All India Index published by Labour Bureau, Govt. of India the Dearness Allowance payable to the Central Govt.staff with effect from January 2011 may not be more than 6 percent.

The figure for Nov'10 has just released and it stands at 182. The December figure is expected in the end of January. Even if the figure touches 185 in December, which is very unlikely, the D.A. hike will be limited to 6%.
Only thing to cheer is the fixed allowances such as Children Education Allowance, Conveyance Allowance for some category of staff will be 25% more as the D.A. will certainly cross the 50% mark. It may be remembered that D.A. linked allwances such as Transport Allowances will be unchanged

Source;paycommissionupdate

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Dearness Allowance Percentage Overview for Central Government Employees

 

Dearness Allowance Percentages - Overview

All of us waiting for Dearness allowance percentage for January 2011, as per AICPIN calculation, we are going to get 6% Dearness allowance from January 2011.

Let us see the past Dearness allowance percentage for Central Government Employees.

Here is the DA Table from 1.1.1996 to 1.1.2004 :

As on	Rates of DA (%)
1.1.1996	0
1.7.1996	4
1.1.1997	8
1.7.1997	13
1.1.1998	16
1.7.1998	22
1.1.1999	32
1.7.1999	37
1.1.2000	38
1.7.2000	41
1.1.2001	43
1.7.2001	45
1.1.2002	49
1.7.2002	52
1.1.2003	55
1.7.2003	59
1.1.2004	61

CHART

 

(Note : Click image to enlarge)

The Fifth CPC had also recommended that

• Dearness allowance equal to 50% of the basic pay should be converted as dearness pay each time the Consumer Price Index increased by 50% over the base index.
• The dearness pay was to be counted as basic pay for all purposes, including retirement benefits.
• The Government allowed merger of dearness allowance equal to 50% of the basic pay into dearness pay to be counted as pay for all purposes barring TA/DA, LTC and entitlement for Government housing w.e.f. 1.4.2004.

The Government merged 50% of the DA with basic pay w.e.f. 1.4.04 and the dearness allowance continued to be calculated with reference to the AICPI (IW) average as on 1st January 1996 of 306.33 without changing the base consequent to the merger. Accordingly, DA at following rates was sanctioned by the Government from 1.7.04 till 1.7.07

As on	Rates of DA (%)
1.7.2004	14
1.1.2005	17
1.7.2005	21
1.1.2006	24
1.7.2006	29
1.1.2007	35
1.7.2007	41

CHART

(Note : Click image to enlarge)

 

The decision taken by the Government on the recommendations of the Sixth Central Pay Commission relating to DA, to decide that the DA admissible to all categories of Central Government employees shall be admissible from the dates mentioned below at the following rates:

 

 

As on	Rates of DA (%)
1.1.2006	0
1.7.2006	2
1.1.2007	6
1.7.2007	9
1.1.2008	12
1.7.2008	16
1.1.2009	22
1.7.2009	27
1.1.2010	35
1.7.2010	45

 

CHART

(Note : Click image to enlarge)

Let us wait for January 2011 Dearness Allowance Percentage.

Source;dearnessallownce.blogspot.com

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DEARNESS ALLOWANCE EASILY REACH 50% JAN 2011

DEARNESS ALLOWANCE EASILY REACH 50% JAN 2011

Central government employees always welcome the announcement of dearness allowance .Now the expectations are doubled in Dearness Allowance(DA),because" DA January 2011" is a major step up to the government employees .All fixed allowances will increase up to 25% ,if the dearness allowance cross over 50%.

In july 2010, 10 % DA announced by central government .Earlier it was 35%. Hence in the month of September Central government employees received 45% DA and its arrears.

July AICPIN was 178,August AICPIN was also 178, and September AICPIN was 179 .According to this index number, DA stands now at 48.6%, so DA may reach easily to 50% with in three months.

Confederation of central govt employees and workers Secretary General published a circular in his blog on 30-10-2010.In that he mentioned about " DA Jan 2011" . They decided to adopt a comprehensive charter in the next meeting of the national council.

Central government employees are confident that the DA component will cross over 50% and will enjoy the benifits of increasing fixed allowances.

source;centralgovernmentemployeesnewsportal

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