125% Dearness Allowance from January 2016 ? CPI IW for August up by 1 point
Finance Ministry issued DA order for payment of dearness allowance w.e.f July 2015
Ministry of Finance
Department of Expenditure
North Block, New Delhi
Under Secretary to the Government of India
Cabinet approves 6% DA hike for central government employees
The proposed DA hike will take effect from July 1. As per the agreed formula, the DA rate increase is an average of 12-month consumer price index-industrial workers from July 1, 2014 to June 30, 2015.
The Cabinet is likely to consider tomorrow a proposal to increase Dearness Allowance (DA) to 119 per cent from 113 per cent, which if cleared will potentially benefit over one crore government employees and pensioners.
“The proposal to increase dearness allowance by six percentage points to 119 per cent is likely to be taken up by the Cabinet tomorrow,” a source said.
Earlier in April, the government had hiked Dearness Allowance by 6 per cent to 113 per cent of their basic pay with effect from January. DA is paid as proportion of the basic pay.
The proposed hike is in accordance with the accepted formula based on the recommendations of the 6th Pay Commission, which will benefit 48 lakh government employees and 55 lakh pensioners.
However, president of Confederation of Central Government Employees’ and Workers K K N Kutty said: “The government should have given interim relief and merged DA with basic pay in view of the extension of term of the 7th Pay Commission by four months till December 31, 2015.”
Elaborating, Kutty added: “The government assured employees that the 7th Pay Commission will submit its report in 18 months. It’s delaying submission of the report by the commission because it doesn’t want to increase its salaries bill this fiscal.”
He further said that keeping in view the real rate of price rise, DA should have been 185 per cent of the basic pay.
Last month, the Cabinet had given approval for the extension of the term of the 7th Central Pay Commission by four months up to December 31.
DA Hike of 6% for central government employees - Aicpin for the month of June 2015
Expected DA increase is 6% from July 2015.
AICPIN increased 2% from the month of May 2015.
GOVERNMENT OF INDIA
MINISTRY OF LABOUR & EMPLOYMENT
LABOUR BUREAU
DATED : 30th June, 2015
DEPUTY DIRECOR GENERAL
The All-India CPI-IW (AI CPI-IW) for the month of May 2015 has been released by the Labour Bureau, Government of India. The index increased by two points from the previous month and now stands at 256. Now with 11 of 12 indices that is required to calculate the dearness allowance from July 2015 being available, it can be assumed that the Dearness Allowance from July 2015 will be 119%. A reasonable positive or negative change in the indices in the month of June may not change the calculation.
http://finmin.nic.in/the_ministry/dept_expenditure/notification/da/da01012015.pdf
With the hike, the pensioners will gain as the benefit provided to them as dearness relief will be hiked to 113 percent of basic pay.
The hike in the DA will be effective from January 1, 2015, sources said.
In September 2014, the government had hiked the rate of DA by 7 percent from the then existing of 100 percent of the basic pay.
It was effective from July 1, 2014.
Download the order from the below Link dated 25/07/2013.
http://www.finmin.nic.in/the_ministry/dept_expenditure/notification/da/da01072013.pdf
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.
Revision of Special Allowance and Cash Handling Allowances as a result of enhancement of Dearness Allowance w.e.f 1.1.2011
This department’s O.M. No. 4/6/2008-Estt.(Pay II) dated 1st October, 2008 states that the rates of Special Allowance and Cash Handling Allowance will be automatically increased by 25% every time the Dearness Allowance payable on revised pay scales goes up by 50%.
View the order below
No. 4/6/2008-Estt. (Pay II)
Government of India
Ministry of Personnel, Public Grievances & Pensions
Department of Personnel & Training.
New Delhi, dated the 13th September, 2011
Office Memorandum
Subject: Revision of Special Allowance and Cash Handling Allowances as a result of enhancement of Dearness Allowance w.e.f 1.1.2011.
This department has been receiving references regarding revision of Special Allowance and Cash Handling Allowance subsequent to increase in the rate of DA @ 51% w.e.f 1.1.2011.
This department’s O.M. No. 4/6/2008-Estt.(Pay II) dated 1st October, 2008 states that the rates of Special Allowance and Cash Handling Allowance will be automatically increased by 25% every time the Dearness Allowance payable on revised pay scales goes up by 50%.
All Ministries / Deptts are therefore, advised to take necessary action accordingly.
Mukesh Chaturvedi
Deputy Secretary to the Govt. of India
To All ministries/ Departments of the Govt of India as per standard list.
DA Hike for July 2011
Central government has hiked the dearness allowance (DA) by a minimum of 7 per cent, benefiting over 50 lakh central government employees and 38 lakh pensioners.
The hike will be applicable from July 1, 2011.
Dearness allowance is revised twice a year, on January 1 and July 1. The relief comes on the back of high retail prices, as inflation has constantly been above the 9 per cent mark.
Headline inflation, based on movement in wholesale prices, was 9.78 per cent in August, much above the comfort level of 5-6 per cent. Food inflation, too, was close to 9.5 per cent for the week ending September 03.
Now the Current DA rate is 58%.
From PIB
Release of additional installment of Dearness Allowance to Central Government employees and Dearness Relief to pensioners.
The Union Cabinet today approved release of additional installment 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.
Latest DA for July 2011
Central Government cabinet Decision likely to be on 15th Thursday.
Central Government employees DA will be expected to be increased by 7%. The decision is expected to be taken in the cabinet Meeting which is going to be held on 15/09/2011 , Thursday. The current Dearness Allowance rate is 51%. It will now become 58%. Last time the DA Increase was 6% only. This increase in DA will be with effect from this July 2011.
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Clarification on increase of allowances by 25% as a result of enhancement of Dearness Allowances w.e.f. 1.1.2011
Allowances Increase w.e.f 1st January, 2011.
View the DoPT- Order Below
No. 12011/01/2011-Estt. (Allowance)
Government of India
Ministry of Personnel, Public Grievances and Pension
Department of Personnel & Training
New Delhi, May 4, 2011
OFFICE MEMORANDUM
Subject: Clarification on increase in certain allowances by 25% as a result of enhancement of Dearness Allowances w.e.f. 1.1.2011 -
On the above mentioned subject, it is stated that consequent upon enhancement of Dearness Allowance payable to Central Government employees @ 51% w.e.f. 1st January, 2011 vide Ministry of Finance, Department of Expenditure O.M. No.1(2)/2011-E-I1 (l3) dated 24 th March, 2011, the following points are clarified:
a) The annual ceiling limit for reimbursement of Children Education Allowance shall be Rs.15,000/- per child. Accordingly, the quarterly claim could be more than Rs.3750/- in one quarter and less than Rs.3750/- in another quarter subject to the annual ceiling of Rs.15,000/- per child and Hostel Subsidy shall be Rs.3750/- per month per child;
b) The rates of Special Allowance for Child Care to women with disabilities stands revised to Rs. 1250/- per month; and
c) The annual ceiling for reimbursement of education allowance for disabled children of Government employees shall be treated as revised to Rs.30,000/ per annum per child and the rates of Hostel Subsidy for disabled children of Government employees shall be treated as revised from Rs.6000/- per child per month to Rs.7500/- per child per month.
2. These revisions are applicable with effect from 1st January, 2011
3 . These revisions shall be subject to other terms and conditions mentioned in this Department's O.M. No.12011/03/2008-Estt (Allowance) dated 2.9.2008 and O.M. No 12011/04/2008 dated 11.9.2008.
(Vibha Govil Mishra)
Deputy Secretary
Telefax: 23092483
Download the Dopt Order Below
What will be the New Dearness Allowance Rate w.e.f July 2011 ?
It is expected that at-least 7% increase will be there in DA from July 2011.
Present DA Rate
There was an increase of 6% DA from 1st January 2011 and the Current DA rate is 51%.
Which Factors will Decide the DA Increase ?
AICPIN for the month of January – 188
AICPIN for the Month of February – 185
The final picture will come only after the release of AICPIN for the month of June 2010.
State/UT wise Group and General Consumer Price Indices for rural areas (Base 2010=100)
What should be the New DA from the Month of July 2011 ?
DA Rate for Govt Employees continuing to draw their pay as per 5th CPC.
Rate of Dearness Allowance applicable w.e.f. 01.01.2011 to the employees of Central Government and Central Autonomous Bodies continuing to draw their pay in the pre-revised scale as per 5th CPC.
View the Finance Ministry Order Below
No.1(3)/2008-EII(B)
Government of India
Ministry of Finance
Department of Expenditure
*****
New Delhi, 31st March, 2011
OFFICE MEMORANDUM
Subject: Rate of Dearness Allowance applicable w.e.f. 01.01.2011 to the employees of Central Government and Central Autonomous Bodies continuing to draw their pay in the pre-revised scale as per 5th CPC.
The undersigned is directed to refer to this Ministry’s Office Memorandumof even No. dated 11th September, 2010 revising the Dearness Allowance w.e.f. 1.7.2010 in respect of employees of Central Government and Autonomous Bodies who continue to draw their pay and allowances in the pre-revised scale of pay as per 5th Central Pay Commission.
2. The rates of Dearness Allowance admissible to the above categories of employees of Central Government and Central Autonomous bodies shall be enhanced from the existing rate of 103% to 115% w.e.f. 01.01.2011. All other conditions as laid down in the O.M. dated 3rd October, 2008 will continue to apply.
3. The contents of this Office Memorandum may also be brought to the notice of the organizations under the administrative control of the Ministries/Departments which have adopted the Central Government scales of pay.
s/d
(Anil Sharma)
Under Secretary to the Government of India
