DA ORDER: Payment of Dearness Allowance to Central Government employees – Revised Rates effective from 1.1.2016.

No. 1/1/2016-E-II (B) 

Government of India 

Ministry of Finance 

Department of Expenditure

North Block, New Delhi 

Dated the 7th April, 2016.

OFFICE MEMORANDUM

Subject: Payment of Dearness Allowance to Central Government employees – Revised Rates effective from 1.1.2016.

The undersigned is directed to refer to this Ministry’s Office Memorandum No. 1/3/2015-E-II (B) dated 23rd September, 2015 on the subject mentioned above and to say that the President is pleased to decide that the Dearness Allowance payable to Central Government employees shall be enhanced from the existing rate of 119% to 125% with effect from 1st January, 2016.

2. The provisions contained in paras 3, 4 and 5 of this Ministry’s O.M. No. 1(3)/2008-E-ll(B) dated 29th August, 2008 shall continue to be applicable while regulating Dearness Allowance under these orders.

3. The additional installment of Dearness Allowance payable under these orders shall be paid in cash to all Central Government employees.

4. These orders shall also apply to the civilian employees paid from the Defence Services Estimates and the expenditure will be chargeable to the relevant head of the Defence Services Estimates. In regard to Armed Forces personnel and Railway employees, separate orders will be issued by the Ministry of Defence and Ministry of Railways, respectively.

5. In so far as the employees working in the Indian Audit and Accounts Department are concerned, these orders are issued with the concurrence of the Comptroller and Auditor General of India.

Sd/-

(Nirmala Dev)

Deputy Secretary to the Government of India

Source:http://finmin.nic.in/

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Good News for Central Govt Employees! DA likely to be hiked to 125% from existing 119% - zeenews

New Delhi: Narendra Modi government is likely to hike dearness allowance (DA) by 6 percent to 125 percent.

The likely increase in dearness allowance by six percent to 125 percent from existing 119 percent would benefit over 10 million central government employees and pensioners.

The new rate of DA will be implemented from January 1, 2016, which will be applicable for 4.8 million central government employees and 5.5 million pensioners. DA is paid as a proportion of basic pay of employees.

The proposal to hike DA is moved by the Finance Ministry on the basis of accepted formula for calculation. The Union Cabinet approves the DA hike for its employees.

The Centre revised DA twice in a year on the basis of one year average of retail inflation for industrial workers as per the accepted formula.

Earlier in September last year, DA was increased to 119 percent from 113 percent which was effective from July 1, 2015. In April last year, the government had hiked DA by 6 percentage points to 113 percent of their basic pay with effect from January 1, 2015.

Source:www.zeenews.india.com

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