No. F. 6(1)FD(Rules)/2008

Sub:- Grant of Dearness Allowance to State Government employees.

The Governor is pleased to order that the existing rate of Dearness Allowance payable to the State Government employees, drawing pay in Rajasthan Civil Services (Revised Pay) Rules, 2008, under Finance Department Order No. F.6(1 )FD(Rules)/2008 dated 01-03-2014 shall be revised from 100% to 107% with effect from 01-07-2014.

The term ‘Pay’ for the purpose of calculation of Dearness Allowance shall be the Basic Pay i.e. sum of pay in running pay band and grade pay drawn and shall not include any other type(s) of pay like Special Pay or Personal Pay, etc.

The payment on account of Dearness Allowance involving fraction of 50 paisa and above may be rounded off to the next higher rupee and the fraction of less than 50 paisa may be ignored.

The amount of increase in Dearness Allowance for the period from 01-07-2014 to 31-08-2014 shall be credited to the General Provident Fund Account of the respective employees and cash payment shall be admissible from 01-09-2014 i.e. salary for the month of September, 2014 payable on 01-10-2014.

The arrear of DA from 01-07-2014 to 31-08-2014 to the employees recruited to the Civil Services on or after 01-01 -2004 and who are governed by Contributory Pension Scheme, shall be paid in cash.

Source: http://finance.rajasthan.gov.in/RULES/F6-(1)-2008-08-09-2014.pdf

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The Centre has announced an additional 7% DA hike for the Central Government employees and Pensioners from July 2014.

Usually, agendas for central government employees’ DA hike are presented at the Cabinet meeting only on the third or fourth Thursdays of the month. There are times when these decisions were made during the last cabinet meeting of the season. Sometimes, these decisions are not made even during the last meeting and are taken up only during special meeting or at critical times.

On the 4th of this month, out of the blue, the Government announced a 7% DA hike. The cabinet’s announcement gives a positive conclusion to the relentless waiting of the past few weeks.

DA is calculated twice a year (from January to June, and from July to December) based on the changes in the Consumer Price Index (IW) BY 2001=100. The AICPIN numbers of the month are released by the Labour Bureau the following month.

In the month of August, the Labour Bureau sends the AICPIN data for the months of January to July, to the Finance Ministry. Based on the data, the Finance Ministry calculates the DA hike and the additional expense likely to be incurred, and presents the findings and reports towards the end of August to the Cabinet for its approval. The final decision is made in the month of September. This is the usual procedure.

Irrespective of the date of the Cabinet approval in the month of September, the DA hikes are calculated and given along with the salary for the month of September. Increase for the month of July and August are calculated and given as arrears to the employees and pensioners too.

Although 7% hike has been confirmed already, the prompt decision is worth appreciating!

Source : www.cgstaffnews.in

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