Today Cabinet may hike dearness allowance by 8%

   The Union Cabinet is likely to approve a proposal to increase dearness allowance (DA) of central government employees by 8% today.

   The move to increase DA from 72% to 80% will benefit around 50 lakh employees and 30 lakh pensioners of the central government.

   "The Union Cabinet may consider the finance ministry proposal to increase DA in its meeting scheduled for Thursday," a source said, adding the hike would be effective from January 1, 2013 and employees and pensioners would be entitled to arrears.

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CONFEDERATION CALLS FOR A STRONG PROTEST AGAINST THE INORDINATE DELAY IN GRANTING 8% DA TO CG EMPLOYEES BY GOVERNMENT.

CONFEDERATION OF
CENTRAL GOVT. EMPLOYEES & WORKERS
A-2/95, Manishinath Bhawan, Rajouri Garden,New Delhi-110 027
Website:www.confederationhq.blogspot.com.
Email:Confederation06@Yahoo.co.in
Tel: 011-2510 5324:  Mobile: 98110 48303

No. Conf/27 /2013 - Dated 17th April 2013

Comrades,
 
DELAY IN GRANT OF DA - HOLD PROTEST DEMONSTRATION ON 23RD APRIL 2013

             Since the implementation of the recommendations of the 4th central pay commission in 1986, the Dearness Allowance (DA) is paid in two six-monthly installments – in March and September of every year. The practice followed since then is that the order granting DA to government employees is issued in March and September itself.
 
            This time the practice in force since 1986 is violated. Our enquiries with concerned Ministries informed us that the file is already moved for Cabinet approval. But it is nearly a month now. The cabinet has found no time to take a decision on this.
 
            This naturally is quiet disturbing, especially in the time of galloping price line. The employees have, in the past, fought bitterly for grant of DA and the 3rd CPC gave a definite formula for DA in the aftermath of the one day strike on 19th September 1968. We cannot allow the hard won DA to be tampered with.

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Dearness allowance from Jan 2013, will be declared only after the Finance Minister arrival..!

   It is really surprising that, even after the month prescribed by 6CPC to announce the Dearness Allowance passed, the central government yet to decide the rate of dearness allowance to be paid to central government employees from January 2013. Almost all the central government employees news websites have written more than enough about the rate and timing of announcing the Dearness allowance payable to central government employees with effect from 1st January 2013.

   On 2nd April 2013, Some Established News websites informed that the 8% dearness allowance likely to be approved by cabinet committee today ie on April 02, 2013. But at the end of the cabinet meeting it had been informed that decision on hiking dearness allowance deferred as the Finance Minister was not present. At that time the Finance Minister P Chidambaram was on an official visit to Japan. According to this claim, it is now very much clear that if FM is not present in the Cabinet committee meeting , the fate of DA will not be decided.

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Expected dearness allowance from July 2013.

Let us hope the DA for January 2013 will be announced very shortly..

and move on to Expected dearness allowance from July 2013

   It is really unfortunate that at the time of discussing about the rate of dearness allowance from July 2013, expectation on dearness allowance from January 2013 is not fulfilled even now. Actually the additional amount, that the central government employees may get, on account of hike in dearness allowance from January 2013 apart from their regular pay is not at all a matter for the people those who are dealing with lakhs and crores. But it is indeed a matter for 50 lakh central government employees and pensioners, In order to deal with abnormal price rise; they have no other option than expecting dearness allowance to be increased. It is expected that the central government has reached the saturation point and it has no other go than to announce it as soon as possible. Let us hope it will be announced very shortly.

   At this juncture it is very hard to move on to the topic of dearness allowance from July 2013. But there is a saying.. “Sometimes It is very hard to move on, once you move on, you will realize it was the best decision you ever made” . So Let us move on to the topic of expected dearness allowance from July 2013.

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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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The announcement on Dearness Allowance is expected by central and state government employees thirstily.

   Dearness Allowance is not only for Central Government employees..!

   It is a practice which has been followed till now that once in six months, according to the price index ,the rate of DA is being granted in the month of march and September for Government servants. It is not only now, the interest to know the rate of dearness allowance granted twice in a year has been there for the past several years.

   Even before 20 years , the Government servants used to buy the monthly called ‘Swamy’s News’ eagerly and share the things they read in the book with others and debated on it.

   Now it is quit natural that people forget the periodicals, monthly magazines that brings last month’s issues in this modern world in which information technology developed a lot and people have the facility to know the facts in and around the world immediately and share their thoughts through social media.

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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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Dearness Allowance from January 2013 - 6th CPC Recommendations on merger of 50% Dearness Allowance.

   "No any recommendation in 6th CPC Report on merger of 50% Dearness allowance with basic pay at any stage"...

   Dearness Allowance from January 2013 – 6th CPC Recommendation

   As of now nobody knows the correct reason why the government is delaying the approval of DA hike from January 2013. Actually the delay in announcing the dearness allowance helps the people speculate more about the Governments Plan about whether the 50% DA will be merged or not.

   As per the 6th CPC recommendation accepted by the government, the Dearness Allowance supposed to be enhanced from 1st January of every year has to be paid with salary of month of March. The 6th CPC was very much clear about two things; first one is the formula for calculating the quantum of DA to be paid to central government employees and its frequency. Second one is on Merger of 50% Dearness allowance with Basic pay by converting it as dearness Pay.

   Sixth Pay Commission recommendation on Merger of 50% Dearness Allowance and sanctioning of DA to central government employees.

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Expected DA from Jul-2013. AICPIN for the month of January-2013. Consumer Price Index for Industrial Workers (CPI-IW) – January, 2013.

No. 5/1/2013-CPI
GOVERNMENT OF INDIA
MINISTRY OF LABOUR & EMPLOYMENT
LABOUR  BUREAU

CLEREMONT, SHIMLA-171004
DATED: the 28th February, 2013

Press Release

Consumer Price Index for Industrial Workers (CPI-IW) – January, 2013

   The All-India CPI-IW for January, 2013 rose by 2 points and pegged at 221 (two hundred and twenty one). On 1-month percentage change, it increased by 0.91 per cent between December and January compared with 0.51 per cent between the same two months a year ago.

   The largest upward contribution to the change in current index came from Housing Group which increased by 3.53 per cent, contributing 1.28 percentage points to the total change. This was followed by Miscellaneous and Food groups with 0.74 and 0.26 per cent increase respectively contributing 0.32 and 0.28 percentage points to the change. At item level, largest upward pressure came from Rice, Wheat & Wheat Atta, Groundnut Oil, Eggs (Hen), Fish Fresh, Goat Meat, Poultry (Chicken), Onion, Tea (Readymade), Firewood, Auto Rickshaw Charges, Bus Fare, Rail Fare, etc. However, this was compensated by Arhar Dal, Potato, Tomato, Other Green Vegetables, Sugar, Electricity Charges and Flower/Flower Garlands by putting downward pressure on the index.

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Expected DA from January 2013 - AICPIN for the month of December 2012.

Consumer Price Index Numbers for Industrial Workers (CPI-IW) December 2012

   The All-India CPI-IW for December, 2012 rose by 1 point and pegged at 219 (two hundred and nineteen). On 1-month percentage change, it increased by 0.46 per cent between .November and December compared with (–)1.01 per cent between the same two months a year ago.

   The largest upward contribution to the change in current index came from Miscellaneous Group which increased by 1.08 per cent, contributing 0.49 percentage points to the total change. This was followed by Clothing, Bedding & Footwear and Fuel & Light groups with 1.17 and 0.92 percent respectively contributing 0.13 and 0.10 percentage points to the change. At item level , largest upward pressure came from Rice, Wheat Atta, Groundnut oil, Fish Fresh, Goat Meat, Poultry (Chicken), Onion, Tea (Leaf), Tea (readymade),Electricity charges, Firewood, Sweater, E.S.I. contribution, Medicine (Allopathic), Private Tution Fees, us fare, Flower/ Flower Garlands, Tailoring Charges, etc.

   The largest downward contribution to the change in current index came from Vegetables & Fruits with a decline of (-) 8.33 per cent contributing (-) 1.21 percentage points to the total change.

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Expected Dearness Allowance from January 2013 vs AICPIN-IW

   The rate of dearness allowance payable to central government employees might be enhanced from 72% to 80% with effect from January 2013

   All India Consumer Price Index Number for Industrial Workers is the only Index watched keenly by each and every Central Government Employees now. Because the rate of Dearness allowance granted twice in a year for cg employees is determined by this Index only. It is irony that no one is happy to see the hike in prices of essential commodity, but all the government servants are eagerly awaiting to know how much the rate of Dearness allowance will be increased at the end of every 12 months from the month of January and July. The interesting thing to be noted in dearness allowance vs AICPIN_IW is that the AICPIN-IW reflects the increase in the prices of basket of essential commodities, whereas, the rate of dearness allowance reflects the increase or decrease in AICPIN-IW. It is quite obvious that the AICPIN – IW is always in the trend of increasing mode due to the price rise, so as the rate of dearness allowance is also increasing twice in a year.

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The Expected Dearness Allowance with effect from January 2013

LIKELY INCREASE IN DA FROM JANUARY 2013 IS 8%

   Central Government Employees, Pensioners and family Pensioners may get Dearness Allowance of 80% with effect from 1st January 2013

   The price index which is called as AICPI – IW (All India Consumer price Index for industrial workers with the base as 2001=100) for the month of September 2012 has been issued by Government.

   This is the table All India consumer price index AICPI-IW for the period from January 2012 to September 2012

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