The post Payment of Dearness Allowance to Central Government employees – Revised Rates effective from 1.1.2013: Finance Ministry DA Order Jan 2013 appeared first on CENTRAL GOVERNMENT EMPLOYEES NEWS.

The hike would be effective from January 1, 2013 and the employees and pensioners will be entitled to arrears.

The decision to raise the DA will impose an additional annual burden of Rs 8,629.20 crore on the exchequer, Information and Broadcasting Minister Manish Tewari told reporters after the meeting of the Union Cabinet.

Taking into account the additional outgo for the January- March period, the total burden during the current financial year would be Rs 10,067 crore.

The government had hiked DA to 72 per cent in September last year. It had come into effect from July 1, 2012.

As per the practice, the DA is merged with basic pay when it breaches the 50 per cent cap.
This helps employees get higher allowances as they are paid as proportion of the basic pay.

PTI

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The Union Cabinet today gave its approval to release an additional installment of Dearness Allowance (DA) to central government employees and Dearness Relief (DR) to pensioners w.e.f. 1.1.2013 representing an increase of 8% over the existing rate of 72% of the Basic Pay/Pension, to compensate for price rise.The rate of DA from 1.1.2013 will be 80%. The increase is in accordance with the accepted formula, which is based on the recommendations of the 6th Central Pay Commission.

An increase in DA would have benefitted about 50 lakh employees and 30 lakh pensioners.

The Central Government employees and pensioners will become entitled to higher amount of dearness allowance / relief respectively 1.1.2013.

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THE CENTRAL GOVERNMENT TODAY APPROVED TO RELEASE A EIGHT PER CENT HIKE IN DEARNESS ALLOWANCE TO CENTRAL GOVERNMENT EMPLOYEES AND PENSIONERS, THIS HIKE IS TO BE EFFECTIVE RETROSPECTIVELY FROM JANUARY 2013…

THE DEARNESS ALLOWANCE AND DEARNESS RELIEF FOR CENTRAL GOVERNMENT SERVING EMPLOYEES AND PENSIONERS WILL INCREASE FROM 72% PER CENT OF BASIC EMOLUMENTS TO 80% PER CENT WITH EFFECT FROM 1.1.2013 TO COMPENSATE FOR PRICE RISE.

VISITORS ARE REQUESTED TO KEEP WATCH ON THIS BLOG TO VIEW THE OFFICIAL ORDER FROM FINANCE MINISTRY REGARDING DA AND DR HIKE AS AND WHEN RECEIVED, WILL BE PUBLISHED..!

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The Union Cabinet is likely to approve a proposal to increase dearness allowance (DA) of central government employees by 8% on Thursday.

The move to increase D.A. from 72% to 80% will benefit around 50 lakh employees and 30 lakh pensioners of the central government.

“The Union Cabinet may consider the finance ministry proposal to increase DA in its meeting scheduled for Thursday,” a source said, adding the hike would be effective from January 1, 2013 and employees and pensioners would be entitled to arrears.

The government had raised DA to 72% in September last year, which had come into effect from July 1, 2012.

As per usual practice, DA is merged with basic pay when it breaches the 50% cap. This helps employees get higher allowances as those are paid as proportion of the basic pay.
Source : Times of India and Zee News

Source: www.paycommissionupdate.blogspot.in
[http://paycommissionupdate.blogspot.in/2013/04/media-report-hints-central-da-hike-today.html]

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Reeling under the inordinate delay, nearly fifty lakh Central Government employees and Pensioners are likely to get approval eight percent hike in Dearness allowance today.

The proposal to hike in the Dearness allowance from 72% to 80% to CG Staff and Pensioners, the Cabinet Committee may approve the agenda to increase Dearness allowance in its meeting scheduled for Thursday, sources said.

Early the Finance Ministry issued authentic orders to release enhanced payment at revised rates on DA to all ministries/departments to all eligible employees…

Finance Ministry order on Dearness allowance with effect from January year wise report…

DA from Jan 2013 (1.1.2013)  – ?

DA from Jan 2012 (1.1.2012) – 03.04.2012

DA from Jan 2011 (1.1.2011) – 24.03.2011

DA from Jan 2010 (1.1.2010) – 26.03.2010

DA from Jan 2009 (1.1.2009) – 13.03.2009

DA from Jan 2008 (1.1.2008) – 17.03.2008

DA from Jan 2007 (1.1.2007) – 22.03.2007

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No. Conf/27 /2013

Comrades,

Since the implementation of the recommendations of the 4th central pay commission in 1986, the Dearness Allowance (DA) is paid in two six-monthly installments – in March and September of every year. The practice followed since then is that the order granting DA to government employees is issued in March and September itself.

This time the practice in force since 1986 is violated. Our enquiries with concerned Ministries informed us that the file is already moved for Cabinet approval. But it is nearly a month now. The cabinet has found no time to take a decision on this.

This naturally is quiet disturbing, especially in the time of galloping price line. The employees have, in the past, fought bitterly for grant of DA and the 3rd CPC gave a definite formula for DA in the aftermath of the one day strike on 19th September 1968. We cannot allow the hard won DA to be tampered with.

Confederation has written to Prime Minister conveying the disquiet amongst the amongst the employees over the inordinate delay in the grant of additional installment of DA due from 1st January 2013 and urging the Prime Minister to take immediate steps to assuage the feelings of the employees. Copy of the letter is given along with this Circular.

The Secretariat of Confederation therefore calls upon every affiliate as well as State Committee of Confederation to organise lunch hour demonstration in the work place on 23rd April 2013, Tuesday and send the following telegram to the Prime Minister of India.

Text of Telegram: EMPLOYEES AGITATED OVER DELAY IN GRANT OF DA, URGE TO EXPEDITE ISSUANCE OF ORDERS.

Each affiliate and State Committee of Confederation may send a detailed report on implementation of the programme in their organisation/state to the Confederation CHQ.

With greetings

CONFEDERATION OF CENTRAL GOVT. EMPLOYEES & WORKERS

Dr Manmohan Singh,
Hon’ble Prime Minister of India
South Block,
New Delhi – 110001

Sir,

Subject: Grant of Dearness Allowance to Central Govt Employees and Officers – Reg.

I am to invite your kind attention to the delay in the grant of additional installment of Dearness Allowance to Central Government employees and officers and the consternation it is causing amongst the employees.

It would be apt to point out here that since the implementation of the 4th CPC recommendations with effect from 1st January 1986, the Dearness Allowance is paid to Central Government employees in two six monthly installments – along with the salary for March and September every year. The 5th and 6th CPCs also recommended the same principle for payment of additional installments of DA and since then the order granting additional installment of Dearness Allowance is being issued well in advance honouring the recommendations.

The Central Government Employees were expecting the announcement of grant of additional installment of Dearness Allowance (8 % with effect from 1st January 2013) and Office Memorandum on that in the month of March 2013 itself. The delay of more than a month has led to disquiet amongst the employees.

I shall be thankful if the fears of the central government of employees are allayed by immediately releasing the additional instalment of Dearness Allowance with effect from 1st January 2013 without any further delay.

Thanking you in anticipation,

Source: http://confederationhq.blogspot.in/

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The decision on Dearness Allowance will be declared only after the Finance Minister’s arrival..?!

It is really surprising that, even after the month prescribed by 6CPC to announce the Dearness Allowance passed, the central government yet to decide the rate of dearness allowance to be paid to central government employees from January 2013. Almost all the central government employees news websites have written more than enough about the rate and timing of announcing the Dearness allowance payable to central government employees with effect from 1st January 2013.

On 2nd April 2013, Some Established News websites informed that the 8% dearness allowance likely to be approved by cabinet committee today ie on April 02, 2013. But at the end of the cabinet meeting it had been informed that decision on hiking dearness allowance deferred as the Finance Minister was not present. At that time the Finance Minister P Chidambaram was on an official visit to Japan. According to this claim, it is now very much clear that if FM is not present in the Cabinet committee meeting , the fate of DA will not be decided.

Now according to the PIB release dated 13-4-2013 , The Union Finance Minister Shri P. Chidambaram left for one week two nation tour to Canada and USA on Sunday,14th April, 2013. The Finance Minister will leave for the back home on 20th April, 2013 and will arrive in the national capital on the early morning of 22nd April, 2013.

Now it can be claimed that the decision on Dearness Allowance will be declared only after the Finance Minister’s arrival. So the central government employees may have to wait for one more week to get the result on  8% hike in dearness allowance from January 2013.

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Central Govt. employees have to wait for a few more days for Dearness Allowance. The P.M is currently on a tour to Germany and cabinet meeting is most likely to be on the next week. The approval of D.A. from January 2013 is already delayed for some weeks for different reasons.

There is strong rumors that due to possible merger, the decision is being delayed but we could not ascertain the news from any reliable source so far. It is not expected that in the present financial situation, Govt. will not like to take additional burden of merging D.A., when there is specific negative recommendation of sixth CPC in this aspect.

The D.A. due from 1.1.2013 is 8% and it will take the total to 80%.

As the P.M. is on a three days visit to abroad and to be in home within this weekend, the cabinet meeting is likely to be in the next week. Till then, the employees have to wait, keeping their finger crossed.

Most of the state Govt. follow central D.A. pattern, so the state employees are also looking towards Delhi.

The post Central Government staffs have to wait for D.A appeared first on CENTRAL GOVERNMENT EMPLOYEES NEWS.

Let us hope the DA for January 2013 will be announced to be very shortly.

Let us move on to Expected dearness allowance from July 2013:

It is really unfortunate that at the time of discussing about the rate of dearness allowance from July 2013, expectation on dearness allowance from January 2013 is not fulfilled even now. Actually the additional amount, that the central government employees may get, on account of hike in dearness allowance from January 2013 apart from their regular pay is not at all a matter for the people those who are dealing with lakhs and crores. But it is indeed a matter for 50 lakh central government employees and pensioners, In order to deal with abnormal price rise; they have no other option than expecting dearness allowance to be increased. It is expected that the central government has reached the saturation point and it has no other go than to announce it as soon as possible. Let us hope it will be announced very shortly.

At this juncture it is very hard to move on to the topic of dearness allowance from July 2013. But there is a saying.. “Sometimes It is very hard to move on, once you move on, you will realize it was the best decision you ever made” . So Let us move on to the topic of expected dearness allowance from July 2013.

As we all know that the Average AICPIN for Industrial Workers starting from the month of July 2012 to June 2013 determines the rate of dearness allowance to increased from 1st July 2013.

Let us see the All India consumer price Index numbers published by Labour Bureau website till date from July 2012

Month : July 2012                            AICPIN-IW : 212
Month : August 2012                     AICPIN-IW : 214
Month : September 2012             AICPIN-IW : 215
Month : October 2012                   AICPIN-IW : 217
Month : November 2012             AICPIN-IW : 218
Month : December 2012              AICPIN-IW : 219
Month : January 2013                  AICPIN-IW : 221
Month : February 2013                AICPIN-IW : 223
Month : March 2013                      AICPIN-IW : to be pulished
Month : April 2013                         AICPIN-IW : to be published
Month : May 2013                           AICPIN-IW : to be published
Month : June 2013                         AICPIN-IW : to be published

The AICPIN for the last four months are yet to be published. According to the 8 months average of AICPIN , if the same trend continues up to June 2013, the dearness allowance to be increased from 1st July 2013 will be around 9% to 10%. So it is estimated from the above AICPIN position that expected increase in dearness allowance (DA) will be around 9% to 10%.

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