Cabinet approves release of an additional instalment of Dearness Allowance to Central Government employees and Dearness Relief to Pensioners w.e.f. 01.01.2025

48.66 lakh Central Government employees and 66.55 lakhs pensioners to benefit

2% benefit to cost Rs. 6614.04 crore per annum to exchequer

The Union Cabinet chaired by Prime Minister Narendra Modi approved to release of an additional instalment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners w.e.f. 01.01.2025 representing an increase of 2% over the existing rate of 53% of the Basic Pay/Pension, to compensate against price rise.

The combined impact on the exchequer on account of increase in both Dearness Allowance and Dearness Relief would be Rs. 6614.04 crore per annum. This will benefit about 48.66 lakh Central Government employees and 66.55 lakhs pensioners.

This increase is in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission.

PIB

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Cabinet approves additional instalment of three percent of Dearness Allowance to Central Government employees and Dearness Relief to Pensioners

Posted On: 16 OCT 2024 3:21PM by PIB Delhi

The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, has approved an additional instalment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners w.e.f. 01.07.2024 representing an increase of three percent (3%) over the existing rate of 50% of the Basic Pay/Pension, to compensate against price rise.

This increase is in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission. The combined impact on the exchequer on account of both DA and DR would be Rs.9,448.35 crore per annum.

This will benefit about 49.18 lakh central government employees and 64.89 lakh pensioners.

– PIB

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Cabinet approves release of additional instalment of Dearness Allowance to Central Government employees and Dearness Relief to Pensioners, due from 01.07.2022.

DA Increase 4% to Central Government employees and pensioners from 01.07.2022

Existing DA 34% + Additional DA 4% = Increase in DA 38%

Cabinet

Cabinet approves release of additional instalment of 4% Dearness Allowance to Central Government employees and Dearness Relief to Pensioners due from 01.07.2022

28 SEP 2022 4:05 PM by PIB Delhi

The Cabinet, chaired by Prime Minister, Shri Narendra Modi, has approved the release of additional instalment of Dearness Allowance and Dearness Relief @ 4% to Central Government employees and pensioners due from 01.07.2022 based on the percentage increase in 12 monthly average of All India Consumer Price Index for the period ending June, 2022.

The Central Government employees and pensioners will become entitled to higher amount of Dearness Allowance and Dearness Relief respectively, w.e.f. 01.07.2022.

The additional financial implications on account of this increase of Dearness Allowance to Central Government employees are estimated at Rs. 6,591.36 crore per annum; and Rs. 4,394.24 crore in the financial year 2022-23 (i.e. for a period of 8 months from July, 2022 to February, 2023).

The additional financial implications on account of this increase of Dearness Relief to pensioners are estimated at Rs. 6,261.20 crore per annum; and Rs. 4,174.12 crore in the financial year 2022-23 (i.e. for a period of 8 months from July, 2022 to February, 2023).

The combined impart on the exchequer on account of both Dearness Allowance and Dearness Relief would be of the order of Rs. 12,852.56 crore per annum; and Rs. 8,568.36 crore in the financial year 2022-23 (i.e. for a period of 8 months from July, 2022 to February, 2023).

PIB

Download DA Increase 4% to Central Government employees and pensioners from 01.07.2022 PDF

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Cabinet approved the proposal to raise the DA for central government employees and pensioners to 38% an increase of 4% DA from July 1, 2022

The 4% increase in Dearness Allowance benefits approximately 47.68 lakh central government employees and 68.62 lakh pensioners.

The proposal to release an additional installment of DA to compensate for the increase in price was approved at the Cabinet Committee on Economic Affairs (CCEA) meeting led by Prime Minister Narendra Modi.

Since the latest dearness announcement hike’s effective date is July 1, the staff would be paid the arrears with their latest salaries, in a festive cheer for approximately 47.68 lakh central government employees and 68.62 lakh pensioners, and is also applicable for civilian employees and those employed in defence services.

The additional financial impacts of this Dearness Allowance increase for Central Government employees are expected to be 6,591.36 crore each year, and 4,394.24 crore in the fiscal year 2022-23 – from 20th July 2022 to 20th February 2023.

The additional financial implications of this increase in Dearness Relief to seniors are expected to be Rs.6,261.20 crore per annum, and Rs.4,174.12 crore in the fiscal year 2022-23 – from July, 2022 to February, 2023.

The aggregate impact on the exchequer from Dearness Allowance and Dearness Relief would be 12,852.56 crore each year, and 8,568.36 crore in the fiscal year 2022-23, that is, from July 20, 2022 to February 20, 2023.

Every year, the central government revises the dearness allowance and dearness relief, however the decision is normally made in March and September.

Previously, in March, the Cabinet approved a plan to raise the dearness allowance (DA) for central government employees and dearness relief (DR) for retirees by 3% to 34% of basic salary, up from 31% previously, beginning January 1, 2022.

The government was paying employees three months in arrears at the time.

Every year, the central government revises the dearness allowance and dearness relief, however the decision is normally made in March and September.

Any modifications to the dearness allowance are made in accordance with the approved formula, which is based on the 7th Central Pay Commission’s recommendations to compensate for price increases.

From July 1, the grant of dearness relief (DR) to central government pensioners and family pensioners will be available at the same updated rate as it is for employees. Pension disbursing agencies, including nationalised banks, will determine the amount of DR payable to each pensioner on an individual basis.

The revised rates would apply to central government pensions, civilian central government pensioners/family pensioners, armed forces pensioners, civilian pensioners paid out of defence duty, all India service pensioners, railway pensioners/family pensioners, and provisional pensioners.

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Grant of Dearness Allowance to Central Government employees – Revised Rates effective from 1.7.2022

An order circulating on #WhatsApp claims that the additional installment of DA will be effective from 01.07.2022

PIBFactCheck

This order is #Fake
Department of Expenditure,
@FinMinIndia
has not issued any such order

PIB Fact-Check: As of July 1, Dearness Allowance increased by 4%. The centre calls the widespread WhatsApp false message

The PIB Fact Check declared on Thursday that a WhatsApp message alleging that the increased Dearness Allowance instalment for Central Government employees will take effect on July 1 of this year is “false.”

The order that has been spreading false information on WhatsApp over the past few days is fake, according to a tweet from PIB Fact Check that also includes a copy of the order. It claims that the additional instalment of Dearness Allowance would begin to be paid on July 1, 2022.

The Ministry of Finance has not issued this Order

Grant of Dearness Allowance to Central Government employees – Revised Rates effective from 1.7.2022

Dearness Allowance payable to Central Government employees shall be enhanced from the existing rate of 34% to 38% of the basic pay with effect from 1st July, 2022.

Cabinet approved 3% DA from Jan 2022 PDF

What was mentioned in the ‘fake’ DA order?

The “false” order, dated 20 September 2022, said that, “Starting on 1 July 2022, the Dearness Allowance provided to Central Government Employees shall be increased from the existing level of 34 to 38 percent of the basic pay.”

Social media is being used to spread a fake order that says the increased Dearness Allowance instalment for Central Government employees would begin on July 1 of this year.

Who is eligible for Dearness Allowance?

The Central government pays its employees a benefit known as a Dearness Allowance (DA) to make up for the loss in value of their monthly salaries and pension payments due to inflation. It is compensated in addition to the worker’s monthly base pay.

DA is updated twice a year, in January and July, and the revised allowance is announced in March and September of each year, accordingly.

DA is computed in accordance with the fact that the impact of inflation varies depending on the location of the government employee. As a result, depending on whether a person works in the urban, semi-urban, or rural sector, their DA fluctuates.

How is the DA hike will be calculated?

The 7th Pay Commission’s formula is used to determine how much DA/DR should be paid. The All India Consumer Price Index for Industrial Workers (CPI-IW), published by the Labour Bureau (Shimla), Ministry of Labour and Employment, currently regulates and calculates the DA on the rate of inflation.

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Additional 3% Dearness Allowance and Relief Hiked By 3% w.e.f. July, 2021 महंगाई भत्ते/राहत को 3 फीसदी बढ़ाने को कैबिनेट की मंजूरी

Cabinet approves release of an additional instalment of Dearness Allowance to Central Government employees and Dearness Relief to Pensions, due from 01.07.2021

An increase of 3% over the existing rate of 28% of the Basic Pay / Pension

This will benefit about 47.14 lakh Central Government employees and 68.62 lakh pensioners

Impact on the exchequer on account of both Dearness Allowance and Dearness Relief would be Rs.9,488.70 crore per annum

Impact on the exchequer on account of both DA and DR would be around ₹ 9,488.70 crore per annum.

केंद्र सरकार के कर्मचारियों और पेंशनभोगियों के लिए आज बड़ा फैसला लिया गया है. उनके लिए दिवाली के तोहफे के रूप में  महंगाई भत्ते को बढ़ाने का फैसला लिया गया है. कैबिनेट मीटिंग में गुरुवार को केंद्र सरकार के कर्मचारियों और पेंशनभोगियों के लिए महंगाई भत्ते को 3 फीसदी बढ़ाने को मंजूरी दी गई है.

DA में 3 फीसदी की और बढ़त होने का मतलब यह है कि अब महंगाई भत्ता (DA) 31 फीसदी होगा. इस बढ़त का सीधा फायदा 1 करोड़ से ज्यादा केंद्रीय कर्मचारियों और पेंशनर्स को मिलेगा.

गौरतलब है कि इस साल जुलाई में ही सरकार ने महंगाई भत्ता (DA Hike) में 11 फीसदी की बढ़त कर इसे 28 फीसदी किया था. इससे पहले DA का भुगतान 17 फीसदी की दर से हो रहा था.

क्यों हुई बढ़त 

असल में लेबर मिनिस्ट्री ने AICPI (All India Consumer Price Index) के पिछले तीन महीनों के आंकड़े जारी किए थे. इनमें जून, जुलाई और अगस्त का नंबर शामिल था. AICPI इंडेक्स अगस्त में 123 अंक पर पहुंच चुका है. इससे ही यह संकेत मिल गया कि महंगाई भत्ते में सरकार आगे और बढ़त कर सकती है. इसके आधार पर ही केंद्रीय कर्मचारियों का महंगाई भत्ता तय होता है.

PIB

The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, today has approved to release an additional instalment of Dearness Allowance to Central Government employees and Dearness Relief (DR) to pensioners w.e.f. 1.7.2021 representing an increase of 3% over the existing rate of 28% of the Basic Pay / Pension, to compensate for price rise.

This increase is in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission. The combined impact on the exchequer on account of both Dearness Allowance and Dearness Relief would be Rs.9,488.70 crore per annum. This will benefit about 47.14 lakh Central Government employees and 68.62 lakh pensioners.

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Good news for Central government employees, Centre is planning to once again hike the Dearness Allowance (DA) of Central government employees.

It may be remembered that the central government recently granted a salary increase for central government employees, bringing the DA to 28%. According to rumours, the Centre is reportedly considering raising the DA to 31%. The DA was previously set at 17%, however, it was raised to 28% in July. The increase in DA is significant since it is directly related to salary, and an increase in DA means that central government employees’ salaries will increase overall.

Dearness Allowance Hike – Salary of Central Government Employees Likely to Increase Again

The DA has previously been enhanced by the Centre in January 2020, when it was increased by 4%. This was followed by a 3% increase in June and a 4% increase in January 2021. Notably, the DA raise for June 2021 has not yet been finalised, although the AICPI June figures suggest that the DA will rise by 3%.

For the period between January 1, 2020, and June 30, 2021, the Centre has previously said that it will not pay any DA arrears.

Because of the Covid-19 epidemic, the DA hike was put on hold for around 18 months. Following the lead of the central government, a few states have opted to raise their DA rates for government employees.

Revised rates of Dearness Allowance to Central Government employees w.e.f. 01.07.2021.

A few days ago, the Ministry of Finance’s Department of Expenditure issued a memorandum regarding the revised DA rates for employees of the central government and central autonomous bodies.

According to the data of AICPI, there is going to be a 3% increase in DA in June 2021 under the 7th Pay Commission. If this happens, then the total DA will increase to 31% which will be paid with the salary of September.

Salary hike calculation on basic pay

According to the 7th CPC Pay Matrix, the salary range of Level-1 of Central employees ranges from Rs 18,000 to Rs 56,900. Meaning the minimum basic salary is Rs 18,000. If we base our calculations on the minimum salary, this is how much increase will be seen in September.

Calculation on 31% Dearness Allowance

Now, if the Dearness Allowance increases by 3% in June, the total DA will increase to 31%. The total yearly dearness allowance on a basic salary of Rs 18,000 is now Rs 66,960. However, when it comes to the difference, the annual salary rise will be Rs 30,240.

• Basic salary of the employee Rs. 18,000
• New Dearness Allowance (31%) Rs.5580/month
• Old Dearness Allowance (17%) Rs.3060/month
• Calculate the difference: 5580-3060 = Rs.2520/month
• Increase in annual salary 2520X12 = Rs 30,240

Via: DNAIndia

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Reconsider the decision taken by the Government to freeze the additional DA/DR due to the Central Government Employees and Pensioners w.e.f. 01/01/2020

AIDEF

ALL INDIA DEFENCE EMPLOYEES’ FEDERATION
‘S. M. Joshi Bhavan’, Survey NO. 81,
Dr. Badasahebd Ambedkar Rood, Khadki, Pune 411 003

Expected DA from January 2020

Ref. No. : 04/1004/ PM/AIDEF/20

Date : 14th May, 2020

To,

Shri.Narendra ModiJi,
Hon’ble Prime Minister,
Government of India,
South Block, New Delhi.

SUBJECT: REQUEST FOR EXTENDING THE BENEFIT OF ECONOMIC PACKAGE / RELIEF ANNOUNCED BY THE HON’BLE PM TO THE CENTRAL GOVERNMENT EMPLOYEES & PENSIONERS BY RELEASING ADDITIONAL DA/DR DUE FROM 01/01/2020.

REFERENCE : AIDEF LETTER ADDRESSED TO THE HON’BLE PM DTD. 27/04/2020.

Respected Sir,

This Federation vide letter referred above have represented to your honour to reconsider the decision taken by the Government to freeze the 3 additional DA/DR due to the Central Government Employees and Pensioners w.e.f. 01/01/2020. We have also brought to your notice that when the entire country was in COVID-19 lockdown, it is the major chunk of the Central Govt. Employees who are working day and night to fight against the spread of the COVID-19 Virus including the Defence Civilian Employees. You will appreciate that they are all working under serious risk of the Pandemic. While your honour announced a special economic and comprehensive package of Rs.20 Lakh Crore, the Central Government Employees and Pensioners were anxiously waiting for the announcement of the Hon’ble Finance Minister with the hope that the Central Govt. Employees & Pensioners also will be given some relief in the economic package by releasing the additional DA/DR due to them, which was already approved by the Cabinet during March 2020.

Also check: Appeal for review of decision Freezing of Dearness Allowance to Central Govt employees

Sir, to our dismay in both the economic relief measures announced by the Hon’ble FM even though she mentioned that the Government ‘s attentive to the needs of all the segment of the economy and society, it is unfortunate that no relief has been given to the Central Govt. and the pensioners to overcome the present economic crisis and exorbitant price rise of the essential commodities. Therefore we are forced to knock once again your door for getting justice to the Central Govt. Employees and pensioners. We therefore request you to kindly withdraw the earlier decision taken by the Govt. to freeze the DA/DR and release the same at the earliest.

Also check: No DA/DR to Central Government employees till July 2021

Awaiting for your earlier and favourable decision please.

Thanking you,

Yours Sincerely,
Sd/-
(C. SRIKUMAR)
General Secretary
Standing Council Member
National Council (JCM)

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7th Pay Commission Latest News Today 2019 – Cabinet Approves 5 percent DA Hike from July 2019

5% DA from July 2019 Declared

More than one crore of employees and pensioners are waiting for the announcement of hike in DA from July 2019.

Today the Centre has decided to increase 5 percent Dearness allowance for Central Government employees and Pensioners with effect from 1st July 2019. The second installment of 5 percent additional Dearness allowance is increased for Central Government employees and Pensioners with effect from July 2019. After enhancement of 5% the DA is increased from 12% to 17%.

Also check: Cabinet approves 5% additional DA/DR to Central Government employees due July, 2019 – PIB

This increase is in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission.

The hiked rate of Dearness Allowance (DA) to central government employees and Dearness Relief (DR) to pensioners will be applicable retrospectively from July this year

These are revised twice a year from January 1 and July 1.

DA Arrears

5% DA Arrears for three months from July to September 2019.

DA from January 2020

The 5% additional Dearness allowance for the period of 6 months from July to December 2019. After that the next episode of ‘DA from January 2020’ will start!

Check this 7th pay commission pay hike latest news

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Expected DA July 2019

As per 7th CPC recommendation, DA is expected to be 5% which is pending since July 2019. There is a chance to get announcement with in one or two days if so, employees would get arrears of three month or else it will be in next month probably. The much speculated 5% hike in DA may now come through as early possible.

As Festival season is so closer, but the government delaying the announcement of DA hike. we may expect at anytime as soon as possible and employees look forward the festival bonus from the government

Also check: 5% DA increase from July 2019 confirmed for Central Government Employees. 12% becomes 17% due to high inflation

Dearness Allowance(DA) is depending on the cost of living adjustment allowance paid to government employees and pensioners.

DA is important not only for the central government employees but for the state Government employees also. Normally it will be announced during September and released on October. Now Employees want to know the clarity about DA hike. The hike will benefit about 48.41 lakh central government employees and 62.03 lakh pensioners.

All Central Government employees and Pensioners including Defence and Railways expecting the announcement of additional Dearness allowance due from July 2019.

DA and DR from July 2019: 5% + 12% = 17%

In regular practice, DA announcement will be in the month of March and September. The 2nd installment of additional DA from July 2019 may be declared today!

Cabinet approval on DA

All pre procedures are completed from the department side and finally Cabinet Cabinet will decide on the agenda item of hike in Dearness Allowance for Central Government employees and pensioners due from July 2019.

Usually, DA hike will be declared after Cabinet Committee approval in the first or second week of March and September. After approval of Cabinet Committee, Finance Ministry will issue formal orders for payment of Dearness allowance to all eligible employees with arrears for two months.

Hence, this is last week of September and Centre is likely to declare 5% DA hike today!

Read More for Expected DA for Central Government Employees

Calculation of Additional DA

According to the AICPIN (Consumer Price Index for Industrial Workers Base Year 2001=100) from January to July 2019 published by Labour Bureau, calculation of additional Dearness Allowance will be as follows…

A=Month/Year, B=CPI(IW) BY2001=100, C=12 Months Total, D=12 Months Average, E=App DA %

As per the recommendations of 7th pay commission, additional DA and DR from July 2019 may be enhanced by 5% from the existing rate of 12%.

All are waiting for the good news soon!

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