With the available Consumer Price Index for Industrial Workers (CPI-IW) indices as published by the Labour Bureau, it is seen that the Dearness Allowance for the central government employees will be at least 50%.

As a central government employee, you’re well aware of the significance of Dearness Allowance (DA) in your compensation structure. It’s a dynamic element that adjusts to the ever-evolving cost of living. The 7th Central Pay Commission had made provisions for hiking the allowances when the DA crosses 50%. However, what happens when DA hits the critical 50% milestone? How does this milestone impact your allowances and financial benefits as a central government employee?

It is expected that the Rate of DA will hit 50% Level from January 2024. When DA reaches 50%, certain allowances and salary components will be increased, as recommended by the 7th Pay Commission. These allowances include:

House Rent Allowance
Children Education Allowance
Special Allowance for Child Care
Hostel Subsidy
TA on Transfer (Transportation of Personal Effects)
Gratuity Ceiling
Dress Allowance
Mileage Allowance for Own Transport
Daily Allowance
House Rent Allowance (HRA)

The rates of HRA have been revised to 27%, 18%, and 9% of Basic Pay in X, Y, and Z cities when DA crosses 25%. The allowances have been revised according to the 7th CPC recommendation. No separate order is needed to revise this allowance, as the government has accepted the recommendation.

House Rent Allowance

The percentage of HRA shall be increased as per the following table when DA reaches 50%:

Type of City HRA from 1.1.2016 HRA when DA reached 25% HRA when DA reaches 50%
X 24% 27% 30%
Y 16% 18% 20%
Z 8% 9% 10%

Children Education Allowance
Children Education Allowance will be increased by 25% every time when DA reaches 50%.

Component Present Rate After DA Reaches 50%:
Children Education Allowance Rs 2,250 /- per month Rs 2812.5/- per month

Children Education Allowance to Divyang Child
Children Education Allowance to Divyang Child will be increased by 25% every time DA reaches 50%.

Component Present Rate After DA Reaches 50%
Children Education Allowance to Divyang Child Rs 4500 /- per month Rs 5625/- per month

Hostel Subsidy
Hostel Subsidy will be increased by 25% every time DA reaches 50%.

Component Present Rate After DA Reaches 50%
Hostel Subsidy Rs 6,750 /- per month Rs 8437.5/- per month

Special Allowance for Child Care for Women with Disabilities
Special Allowance for Child Care for Women with Disabilities will be increased by 25% every time DA reaches 50%.

Component Present Rate After DA Reaches 50%
Special Allowance for Child Care Rs 3000 /- per month Rs 3750/- per month

Gratuity Ceiling

Gratuity Ceiling will be increased by 25% whenever DA rises by 50%.

Maximum Gratuity Ceiling at Present Maximum Ceiling when DA Rises by 50%
Rs 20 Lakhs Rs 25 Lakhs

Dress Allowance

The Rates of Dress Allowance categories shall be increased by 25% whenever DA rises by 50%.

Category of Employee Present Rate After DA Reaches 50%
1 Special Protection Group (SPG) Operational 27,800 34750
2 Special Protection Group (SPG) Non – operational 21,225 26531
3 Officers of Army / IAF / Navy / CAPFS / CPOs RPF / RPSF / IPS / Coast Guard 20,000 25000
4 Executive Staff of Customs, Central Excise and Narcotics Department, etc. 10,000 12500
5 Other Categories of Staff 5,000 6250
6 Nurses 1800 /- per month 2250

TA on Transfer (Transportation of Personal Effects)

The following rates will be increased by 25% when DA reaches 50%.

Level By Train / Steamer By Road
12 and above 6000 Kg by goods train / 4 wheeler wagon / 1 double container Rs. 50 / – per km
6 to 11 6000 Kg by goods train / 4 wheeler wagon / 1 single container Rs. 50 / – per km
5 3000 kg Rs. 25 / – per km
4 and below 1500 kg Rs. 15 / – per km

Mileage Allowance for Own Transport

Mode of Transport Present Rate After DA Reaches 50%
For Journeys Performed in Own Car / Taxi Rs. 24 / – per km Rs. 30 / – per km
For Journeys Performed by Auto Rickshaw, etc. Rs. 12 / – per km Rs. 15 / – per km

Daily Allowance

The following Daily Allowance rates for reimbursement of various expenses shall be increased by 25% when DA rises by 50%.

For Pay Levels 14 and above:
Entitlement
Reimbursement for hotel accommodation/guest house of up to Rs. 27,500 / – per day.
Reimbursement of AC taxi charges as per actual expenditure commensurate with official engagements for travel within the city.
Reimbursement of food bills not exceeding Rs. 1,200 / – per day.

For Pay Levels 12 and 13:
Entitlement
Reimbursement for hotel accommodation/guest house of up to Rs. 4,500 / – per day.
Reimbursement of AC taxi charges of up to 50 km per day for travel within the city.
Reimbursement of food bills not exceeding Rs. 1,000 / – per day.

For Pay Levels 9 to 11:
Entitlement
Reimbursement for hotel accommodation/guest house of up to Rs. 2,250 / – per day.
Reimbursement of non-AC taxi charges of up to Rs. 2,338 / – per day for travel within the city.
Reimbursement of food bills not exceeding Rs. 900 / – per day.

For Pay Levels 6 to 8:
Entitlement
Reimbursement for hotel accommodation/guest house of up to Rs. 2,750 per day.
Reimbursement of non-AC taxi charges of up to Rs. 2,225 / – per day for travel within the city.
Reimbursement of food bills not exceeding Rs. 2,800 / – per day.

For Pay Levels 5 and below:
Entitlement
Reimbursement for hotel accommodation/guest house of up to Rs. 450 per day.
Reimbursement of non-AC taxi charges of up to Rs. 2,113 / – per day for travel within the city.
Reimbursement of food bills not exceeding Rs. 500 / – per day.

Reimbursement of Hotel Charges:

For levels 8 and below, the amount of claim (up to the ceiling) may be paid without the production of vouchers against self-certified claims only. The self-certified claim should clearly indicate the period of stay, name of dwelling, etc. Additionally, for stay in Class ‘X’ cities, the ceiling for all employees up to Level 8 would be Rs. 1,000 per day, but it will only be in the form of reimbursement upon the production of relevant vouchers. The ceiling for reimbursement of hotel charges will further rise by 25 per cent whenever DA increases by 50 per cent.

Reimbursement of Travelling Charges:

Similar to reimbursement of staying accommodation charges, for levels 8 and below, the claim (up to the ceiling) may be paid without the production of vouchers against self-certified claims only. The self-certified claim should indicate the period of travel, vehicle number, etc. The ceiling for levels 11 and below will further rise by 25 per cent whenever DA increases by 50 per cent. For journeys on foot, an allowance of Rs. 12/- per kilometre travelled on foot shall be payable additionally. This rate will further increase by 25 per cent whenever DA increases by 50 per cent.

Reimbursement of Food Charges:

There will be no separate reimbursement of food bills. Instead, the lump sum amount payable will be as per Table E(i) above and, depending on the length of absence from headquarters, would be regulated. Since the concept of reimbursement has been done away with, no vouchers will be required. This methodology is in line with that followed by Indian Railways at present (with suitable enhancement of rates). i.e. Lump sum amount payable. The lump sum amount will increase by 25 per cent whenever DA increases by 50 per cent.

The post Benefits of 50% DA Hike for Central Government Employees appeared first on CENTRAL GOVERNMENT EMPLOYEES NEWS.

7th Pay Commission Latest News Today 2019 – 5% Hike in DA for Central Government employees and pensioners before Diwali

DA Announcement before Diwali

More than one crore Central Government employees and pensioners are looking for DA announcement from the month of September. The Central Government has not taken any decision on DA yet. We hope that the announcement of 5% increase in DA additionally from July 2019 will be declared before the grand festival of Diwali.

Also read: 7th CPC DA Hike will announce today for central government employees and pensioners

17% of 7th CPC Matrix Pay

At present, all Central government employees are getting 12% Dearness allowance of their matrix pay and if Govt declare 5% hike in DA, the total DA will become 17%. For example, if an employee gets Rs. 49000 matrix basic pay, he will get enhanced DA will be Rs. 8330 per month (Rs. 5880 + Rs. 2450 = Rs. 8330).

First Time 5% DA

After implementation of 7th Pay Commission, this is the first time 5% increase in DA

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

The post DA Announcement before Diwali – 5% Hike in DA for Central Government Employees before Diwali appeared first on CENTRAL GOVERNMENT EMPLOYEES NEWS.

Press Information Bureau
Government of India
Ministry of Statistics & Programme Implementation

14-October-2013 17:31 IST

Statement of Srikant Kumar Jena on Consumer Price Index

Shri Srikant Kumar Jena, Minister of State (Independent charge), Ministry of Statistics and Programme Implementation announced the release of the monthly provisional Consumer Price Index (CPI) on Base 2010=100 along with annual inflation rates for September 2013, compiled by the Central Statistics Office. Final CPI numbers for the month of August 2013 have also been released.

All India General (all groups) CPI numbers of September 2013 for rural, urban and combined are 137.8, 134.0 and 136.2 respectively.

Provisional annual inflation rate based on all India general CPI (Combined) for September 2013 on point to point basis (September 2013 over September 2012) is 9.84%. The corresponding inflation rates (provisional) for rural and urban areas are 9.71% and 9.93% respectively. Inflation rates (final) for rural, urban and combined for August 2013 are 8.93%, 10.32% and 9.52% respectively.

Provisional annual inflation rates of September 2013 for rural, urban and combined in respect of ‘food and beverages’ are 11.48%, 11.36% and 11.44% respectively.

Source: PIB News

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Calculation of DA(Dearness Allowance) Rates

•     DA rates for Government employees are to be announced half yearly which will be applicable from first January and First July.
•     On implementation of Sixth Pay Commission recommendations with effect from 01.01.2006 a new method of calculation of DA (dearness allowance) rates is adopted by Central (including Railways)and State Governments.
•     DA rates are fixed on the basis of All India Consumer Price Index (AICPI) for industrial workers with Base year as 2001.

Method of Calculation
DA is calculated using the following formulae:

Dearness Allowance = (Avg of AICPI for the past 12 months – 115.76)*100/115.76
(Fractions are ignored)

The figure 115.76 signifies the average of price index from Jan 2005 to Dec 2005.

Example: To calculate Jan 2013 DA rate Price index average from Jan 2012 to Dec 2012 is taken.

AICPI data for Jan 2012 to Dec 2012 as per Labour Bureau, Department Statistics, Government of India website is as follows:

Dearness allowance (01.01.2013)=( 209.33-115.76)*100/115.76=80.83

• DA  (after ignoring fraction)=80 %
• So Rate of DA expected from 01.01.2013 is 80 %
• The rate of increase will be 8% (72% to 80%).

Source: Indian railway employee

The post Method of Calculation of Dearness Allowance and Expected DA Increase from 2013 appeared first on CENTRAL GOVERNMENT EMPLOYEES NEWS.

The Dearness allowance is based on All India Consumer Price Index. The Dearness allowance is granted to compensate the price increase above 536 points (Base Year 1982=100) [115.763 Points (Base Year 2001=100)], to which the revised pay scales relate. This will be approved twice a year, payable from 1st January and 1st July. The twelve monthly average CPI above 536/115.763 points is determined twice in a year for the period ending December and June.

For arriving at Dearness allowance increase we need to know the All India Consumer Price Index for Industrial Workers [CPI(IW)] for the previous six months. For Dearness allowance revision w.e.f 1st January of a year, the CPI of July to Dec are required. For Dearness allowance revision w.e.f. 1st July of a year, CPI of Jan to Jun are required and so on.

The average CPI of the twelve months is then taken for calculation and the following formula is used :

New rate of Dearness allowance = (Average CPI for 12 months – 115.763 x 100) / 115.763

Additional rate of Dearness allowance = New DA rate – Old DA rate

The All India Consumer Price Index Numbers will be notified by the Labour Bureau on the last day of next month on its official website.

Example as follows…
AICPIN for the months for
Jul-11 193
Aug-11 194
Sep-11 197
Oct-11 198
Nov-11 199
Dec-11 197
Jan-12 198
Feb-12 199
Mar-12 201
Apr-12 205
May-12 206
Jun-12 208

Total = 2395
Average = 199.58

Calculation as follows…

2395 – 115.763 x 100
—————————- = 72.41
115.763

The total Dearness allowance with effect from Jan 2012 will be 72%.

The post How Dearness Allowance increase is calculated..? appeared first on CENTRAL GOVERNMENT EMPLOYEES NEWS.

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