Tamil Nadu Government Increases Dearness Allowance by 2% in Jan 2025

In line with the Central Government’s approval of a 2% Dearness Allowance (DA) hike, the Tamil Nadu Government has announced a 2% increase in Dearness Allowance for its employees, effective from January 1, 2025, Chief Minister M.K. Stalin said. This Dearness Allowance revision in Tamil Nadu 2025 will benefit over 16 lakh government employees, teachers, and pensioners across the State. The decision is expected to cost the Tamil Nadu State exchequer ₹1,252 crore annually, supporting the welfare of public sector workers and retirees.

தமிழ்நாடு அரசு, தனது ஊழியர்களுக்கான அகவிலைப்படி தொகையை 2% உயர்த்தியுள்ளது. இந்த உயர்வு 2025 ஜனவரி 1 முதல் அமலுக்கு வரும். இதனால் 16 லட்சம் அரசு ஊழியர்கள், ஆசிரியர்கள் மற்றும் ஓய்வூதியதாரர்கள் பயனடைவார்கள். ஆண்டுக்கு ரூ.1,252 கோடி செலவு அரசுக்கு ஏற்படும்.

Download Tamilnadu Government Employees DA Order Jan 2025 PDF

Tamil Nadu Govt hikes 2% DA for state government employees from Jan 2025

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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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CONFEDERATION OF CENTRAL GOVT. EMPLOYEES & WORKERS
1st Floor, North Avenue PO Building, New Delhi – 110001

Ref: Confed./2025/Improvement in DA & DR/

Dated – 17.01.2025

To,
The Cabinet Secretary,
Government of India,
Rashtrapati Bhawan,
New Delhi -110004
Email address : cabinet[at]nic.in

Sub: Request for the improvement in computation of Dearness Allowance & Dearness Relief for Central Government Employees and Pensioners- reg.

Respected Sir,

The Confederation of Central Government Employees and Workers, represents about 7 lakhs Central Government employees, working in various Departments of Central Government Departments viz., Postal, Income tax, AG’S, Audit Departments, Survey Departments, Census, GSI, CPWD, CGHS, SREE CHITHRA etc. numbering about 130 Associations & Federations are affiliates of Confederation of Central Government employees and Workers.

The Confederation extends its warm festive Greetings and new year wishes.

The main improvements suggested in computation of Dearness Allowance & Dearness Relief of Central Government employees & pensioners sought are as below; –

1) The DA formula is as below:

For Central Government Employees:
DA = { (Average of AICPI (Base year 2016=100) for the last 12 months – 115.76)/115.76 } x 100

For Public Sector Employee:
DA = { (Average of AICPI (Base year 2001=100) for the last 3 months – 126.33)/126.33 } x 100

The above formula needs modifications.

The formula to calculate the Dearness Allowance (DA) for bank employees is:

• DA% = [(Average of AICPI (Base Year 2001 = 100) for the last 3 months – 126.33)/126.33] x 100

2) The average of 12 months should be replaced by a three months average that means variable DA should be given so that the employees get compensated by actual price rise every three months.as in public sector employees and Banks employees.

The DA of banking employees are revised every quarter i.e. Feb-April, May-July, August- October and November- Jan every year

If a price rise is taking place in January, it is compensated partially after 12 months. The DA should be calculated and paid every three months instead of six months

3) Point to point DA should be provided, now the DA is rounded off to lowest value if we are eligible for 42.90 % DA we are sanctioned only 42% DA, the 0.9 % DA is being deprived to the CG employees for six months, the point-to-point DA should be provided to us as in the case of Banks and LIC employees get the DA even point to point DA.

4) Construct a separate consumer index for the Central Government Employees and Pensioners.

The items used for calculation of the Consumer price index is 465 items after the new series 2016 was adopted by the Government. As many of these items are not used by the central government employees in day-to-day life, it neutralizes the effect of price rise of the actual items used by the central government employees and pensioners, we are getting less dearness allowance than the actual price rise happening. Hence there is a need to construct a separate consumer index for the central government employees and pensioners.

Recommendation of 6th CPC vide para no 4.1.13

The Commission is of the view that the National Statistical Commission may be asked to explore the possibility of a specific survey covering Government employees exclusively, so as to construct a consumption basket representative of Government employees and formulate a separate index. Meanwhile, the Government may continue to use the AICPI (IW) for estimating the DA.

Hence separate DA / AICPI should be formed for Government employees

5) The Labour Bureau, which is an attached office of the M/O Labour & Employment, has been compiling Consumer Price Index for Industrial workers every month on the basis of retail prices collected from 317 markets spread over 88 industrial important centres in the country. The index is compiled for 88 industrial important centres and All India Consumer Price Index is released on the last working day of succeeding month by Ministry Of Labour & Employment, Labour Bureau Chandigarh on last day of the month on which the DA is calculated every six months.

The Consumer Price Index for Industrial Workers maintained by Labour Bureau, Shimla and the retail prices are showing different retail rates, the retail prices of essential commodities are at higher end including that of state Government run co-operative societies compared to the retail prices maintained by Labour Bureau, Shimla, not on prevailing market retail rates, net difference of price of commodities varies up to 30 %.

The retail prices are higher in other Central Government Departments, compared to the Labour Bureau, Shimla such as Directorate of Economics & Statistics prices which is also a Central Government Department https://rpms.dacnet.nic.in/

&

Department Of Consumer Affairs (Price Monitoring Division) https://fcainfoweb.nic.in/

Therefore, the CG employees & pensioners are deprived of proper Consumer Price Index as retail prices maintained by Labour Bureau, Shimla are adopting lower prices.

The Dearness Allowance and Dearness relief is based upon the Consumer Price Index (CPI) points.

Hence proper methodology shall be adopted at arriving at the retail prices of the items, which leads to construction of the Consumer Price Index (CPI).

The above main improvements suggested in Dearness Allowance & Dearness Relief of Central Government employees & pensioners is requested to be implemented at the earliest.

With Regards,

Yours Sincerely,
(S.B. Yadav)
Secretary General

Copy to,
The Secretary General, Staff Side, NC JCM New Delhi.

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No. 1/5/2024-E.II (B)
Government of India
Ministry of Finance
Department of Expenditure

North Block, New Delhi
Dated the 21st October, 2024

OFFICE MEMORANDUM

Subject: Revision of rates of Dearness Allowance to Central Government employees effective from 01.07.2024.

The undersigned is directed to refer to this Department’s Office Memorandum No. 1/1/2024-E.II (B) dated 12th March, 2024 on the subject mentioned above and to say that the President is pleased to decide that the rates of Dearness Allowance payable to Central Government employees, shall be enhanced from 50% to 53% of the Basic Pay with effect from 1st July, 2024.

The term Basic Pay in the revised pay structure means the pay drawn in the prescribed Level in the Pay Matrix as per 7th CPC recommendations accepted by the Government, but does not include any other type of pay like special pay, etc.

3. The Dearness Allowance will continue to be a distinct element of remuneration and will not be treated as pay within the ambit of FR 9(21).

4. The payment on account of Dearness Allowance involving fractions of 50 paise and above may be rounded to the next higher rupee and the fractions of less than 50 paise may be ignored.

5. 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 respect of Armed Forces personnel and Railway employees, separate orders will be issued by the Ministry of Defence and Ministry of Railways, respectively.

6. In so far as the persons serving in the Indian Audit and Accounts Department are concerned, these orders are issued in consultation with the Comptroller and Auditor General of India, as mandated under Article 148(5) of the Constitution of India.

(Abhimanyu Sahoo)

Deputy Secretary to the Government of India

To

All Ministries/ Departments of the Government of India (as per standard distribution list)

Copy to: C&AG, UPSC, etc. as per standard endorsement list.

Download DA July 2024 PDF Finmin Order 01.07.2024

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Cabinet

Cabinet approves Unified Pension Scheme

The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, today approved the Unified Pension Scheme (UPS).

The salient features of the UPS are:

1. Assured pension: 50% of the average basic pay drawn over the last 12 months prior to superannuation for a minimum qualifying service of 25 years. This pay is to be proportionate for lesser service period upto a minimum of 10 years of service.
2. Assured family pension: @60% of pension of the employee immediately before her/his demise.
3. Assured minimum pension: @10,000 per month on superannuation after minimum 10 years of service.
4. Inflation indexation: on assured pension, on assured family pension and assured minimum pension
   
   Dearness Relief based on All India Consumer Price Index for Industrial Workers (AICPI-IW) as in case of service employees
   
   
5. lump sum payment at superannuation in addition to gratuity

1/10th of monthly emoluments (pay + DA) as on the date of superannuation for every completed six months of service this payment will not reduce the quantum of assured pension

PIB

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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.

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Declaration of DA, PLB and Ad-Hoc Bonus: Confederation writes to FM

Ref: Confd. Bonus- DA-DR/2023

Dated – 06.10.2023

To
Smt. Nirmala Sitharaman
Hon’ble Finance Minister
Government of India
Ministry of Finance
North Block, New Delhi – 110001

Sub: DECLARATION OF DA/DR, PLB AND ADHOC BONUS – REG.

Respected Madam,

I would like to bring to your kind attention towards non declaration of the due installment of DA/ DR w.e.f. from 01-07-2023, normally it used to be declared in the last week of September and three months arrears paid in first week of October.

Severe discontent is there amongst employees and pensioners, over the delay in Announcement of the same.

Similarly, Durga Puja festival is approaching and the PLB and Adhoc Bonus too, are to be declared.

The Confederation seeks your immediate intervention in the above matter and request you to kindly cause the Declaration/ Issuance of DA/ DR order’s and the Bonus order’s, timely.

With profound regards

Yours Sincerely

(S.B. Yadav)
Secretary General

Source: Confederation

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Government of India
Ministry of Finance
Department of Expenditure

Rajya Sabha
Unstarred Question No. 689

To be answered on Tuesday, 13 December, 2022
Agrahayana 22, 1944 (Saka)

Release of arrears of Dearness Relief of 18 months to pensioners

689: Shri Naranbhai J. Rathwa:

Will the Minister of Finance be pleased to state:

(a) whether the Government has received several representations regarding the release of arrears of Dearness Relief to Central Government pensioners of 18 months i.e. from January 2020 to June, 2021:

(b) if so, the details thereof: and

(c) whether Government is sincerely considering the release of 18 months arrears to pensioners, if not, the reasons therefor?

Answer

Minister of State in the Ministry of Finance (Shri Pankaj Chaudhary)

(a) & (b) Yes, Sir. Several Representations regarding release of arrears of 18 months of DA/DR payable to Central Government employees/pensioners have been received from various Centra! Government employees/pensioners’ associations such as National Council (JCM), National Federation of Indian Railway Men (NFIR), All India Railway Men’s Federation (AIRF), All India Retired Railway Men’s Federation (AIRRF), JCOs/OR Veterans Association (JOVA), Bhartiya Railway Karamchari Union (BRKU), Bhartiya Pension Manch, National Ex-Servicemen Co-ordination Committee and Veteran Association etc.

(c) The decision to freeze three instalments of DA/DR to Central Government employee/pensioners due from 01.01.2020, 01.07.2020 & 01.01.2021 was taken in the context of COVID-19 which caused economic disruption so as to ease pressure on Government finances.

As the adverse financial impact of pandemic in 2020 and the financing of welfare measures taken by Government had a fiscal spill over beyond Financial Year 2020-21, release of arrears of DA/DR was not considered feasible.

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PP-08/2/2021- PAP-DOP
Government of India
Ministry of Communications
Department of Posts
[Establishment Division/P.A.P. Section]

Dak Bhawan, Sansad Marg,
New Delhi – 110 001.
Dated: 19th October 2022.

To
All Chief Postmasters General
All Postmasters General
Sr. Deputy Director General (PAF), Department of Posts
AII General Managers (Finance)
All Directors/ Deputy Directors of Accounts (Postal)
Director, RAKNPA / Directors of All PTCs

Sub: Revised rates of Dearness Allowance to the employees of Central Government and Central Autonomous Bodies continuing to draw their pay in the pre-revised scales/ Grade pay as per 6th and 5th Central Pay Commission w.e.f from 07.07.2022

Sir/Madam,
I am directed to forward herewith copies of the Ministry of Finance, Department of Expenditure’s Office Memorandum No.1/3(I)/2008-E.II (B) and O.M. No. 1/3(2)/2008- E.II (B) dated 12.10.2022 on the subject cited above for information and further necessary action.

2. This issue with the approval of the competent authority.

Yours faithfully,
Tarun Mittal
Assistant Director General PE I L/o ADG (Estt.)

6th CPC Dearness Allowance to Central Government Employees from July 2022 – DoE Order

5th CPC Dearness Allowance to Central Government Employees from July 2022 – DoE Order

Download DoP – Revised rates of DA to the Central Government employees and CAB continuing to draw their pay in the pre-revised scales/Grade pay as per 6th and 5th CPC w.e.f from 01.07.2022 PDF

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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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