Cabinet approves 7% hike in DA for central government employees.
The new DA rate is 72%. The decision will benefit about 50 lakhs central government employees and 30 lakh pensioners.
The increase in DA is in accordance with the accepted formula which is based on the recommendations of the 6th Central Pay Commission, the release added.
The government periodically hikes the DA, which is linked to consumer price index for industrial workers. The all-India Consumer Price Index for June, 2012 worked out to be 199.58, which constituted an increase of 72.40 percent over the base index of 115.76 (as on January 1, 2006).
The consumer price index (CPI), based on movement in retail prices, soared to 10.03 percent in August, from 9.86 percent in July.
As regards the financial implications, the annual burden on exchequer would be Rs 4,338 crore on account of increase in DA for employees and Rs 3,070 crore towards pensioners.
The burden during the remaining part of the current fiscal has been estimated at Rs 2,892 crore on account of additional payment to employees and Rs 2,046 crore to pensioners.
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Payment of Dearness Allowance to Central Government employees - Revised Rates effective from 1.7.2012.
No.1(8)/2012-E-II(B)
Government of India
Ministry of Finance
Department of Expenditure
North Block, New Delhi
Dated: 28th September, 2012
OFFICE MEMORANDUM
Subject : Payment of Dearness Allowance to Central Government employees - Revised Rates effective from 1.7.2012.
The undersigned is directed to refer to this Ministry’s Office Memorandum No.1(1)/2012-E-II (B) dated 3rd April, 2012 on the subject mentioned aboe 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 65% to 72% with effect from 1st July, 2012.
2. The provisions contained in paras 3, 4 and 5 of this Ministry’s O.M. No.1(3)/2008-E-II(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 persons serving in the Indian Audit and Accounts Department are concerned, these orders issue in consultation with the Comptroller and Auditor General of India.
sd/-
(Anil Sharma)
Under Secretary to the Government of India
Source: www.finmin.nic.in
[http://finmin.nic.in/the_ministry/dept_expenditure/notification/da/da01072012.pdf]
Thanks GoI. However, what shall we do with State Govts. which do NOT implement the order in respect of AIS officers, serving and retired, who draw salary and pension from the state.