Expected dearness allowance from July 2013.

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

and 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	AICPIN-IW
July 2012	212
August 2012	214
September 2012	215
October 2012	217
November 2012	218
December 2012	219
January 2013	221
February 2013	223
March 2013	to be published
April 2013	to be published
May 2013	to be published
June 2013	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 will be around 9% to 10%

Source: www.gservants.com

AIRF urged Finance Minister of India to announce Payment of Dearness Allowance to Central Government Employees and Pensioners.

All India Railwaymen's Federation

No.AIRF/13

Dated: April 9, 2013

Shri P. Chidambaram,
Hon’ble Finance Minister,
Ministry of Finance,
(Government of India)
North Block,
New Delhi.

Dear Sir,

Sub: Payment of Dearness Allowance to Central Government Employees and Pensioners

   It is very unfortunate that the announcement for the payment of Dearness Allowance is being delayed badly and is creating lots of frustration among the Central Government Employees as well as Pensioners. Particularly Railway Employees, who are the prime mover of the wheel of the development and growth of the nation, they also feel frustrated because of inordinate delay in the announcement for the payment of Dearness by the Government of India(Ministry of Finance).

   In this connection, it is worth-mentioning that, it has never happened in the past so many years when payment of Dearness Allowance has not been announced before 31st March.

   All India Railwaymen’s Federation, representing more than 13 lakh Railwaymen as well lakhs of Central Government Employees and Pensioners(through the NC/JCM), strongly protests against the delay in announcement of Dearness Allowance and demands that it should be announced immediately to avoid any confrontation.

Yours faithfully,

Sd/-
[Shiva Gopal Mishra]
General Secretary
            &
Member NC/JCM(Staff Side)

The announcement on Dearness Allowance is expected by central and state government employees thirstily.

   Dearness Allowance is not only for Central Government employees..!

   It is a practice which has been followed till now that once in six months, according to the price index ,the rate of DA is being granted in the month of march and September for Government servants. It is not only now, the interest to know the rate of dearness allowance granted twice in a year has been there for the past several years.

   Even before 20 years , the Government servants used to buy the monthly called ‘Swamy’s News’ eagerly and share the things they read in the book with others and debated on it.

   Now it is quit natural that people forget the periodicals, monthly magazines that brings last month’s issues in this modern world in which information technology developed a lot and people have the facility to know the facts in and around the world immediately and share their thoughts through social media.

   It is not right thinking that DA is a matter belongs to only the Central Government employees those who are around 80 Lakhs including Pensioners. Actually they are the reference points for entire state government employees and pensioners except very few states and their numerical strength may be beyond crores.

   Whatever the rate of DA offered for central government employees, the state governments have no other go than to follow it.

   The announcement on Dearness Allowance expected by central and state government employees and pensioners has been getting delayed is making unnecessary embracement. It is believed that not happened like this before.

   Let us hope that there will not be further delay and it will be announced in next cabinet meeting positively.

Source: www.ekanews.blogspot.in

Announcement of DA from January 2013: Speculation of reasons for delay.

   After implementation of recommendations of Sixth Pay Commission the Govt. has accepted the calculation of standard formula for calculation of future DA and in para 4.1.19 Sixth Pay commission has recommended that DA may continue to be sanctioned twice a year as on 1st January and 1st July payable with the salary of March and September.  After 6th CPC implementation order of DA from January of respective years was issued/declared as follows:-

15/3/2007- 6% – Thursday
07/3/2008 -6% – Monday
26/2/2009- 6% – Thursday
19/3/2010 –8% – Friday
22/3/2011- 6% – Tuesday
23/3/2012 -7% – Friday

   DA from January, 2013 is yet to be announced.  No any reason for delay is stated from any reliable sources and no exact reason can be constitute for it.  Now everyone to speculate the reason for delay in announcement.  The following main facts are presented to inspect the reasons:

1. Merger of DA with Basic Pay:  This is the first reason is everyone’s mind.

   Positive points are for this reason:-
   (a).  Unexpected delay in announcement -  Traditionally DA for January should be announced in the Month of March.  There is no complicated formula for calculation of expected DA.  Only formal announcement was to made by Govt.
 
   (b).  2014 General Election – Next General Election is in near future.  All are expecting that Govt. may consider about merger of DA in view of the inflation and vote bank.

   (c).  Union Minister Ajay Maken’s letter to PM about inflation -  This letter showing that some part of Govt. is also in favour of enhancement of pay and allowances of Central Government Employees.

   (d).  Employee Unions are pressing hard for merger of DA.

   (e).  In press clip for expectation of announcement of DA on 2th April mostly news article added that confederation has demanded the merger of DA and in practice govt. merged the DA when it reach 50% cap.

   Negative points of this reason:-

   (a) 6th CPC has not recommended for merger of DA.  In Para 4.1.18 of recommendation of 6th CPC :

   4.1.18 ……This conversion, however, is not necessary in the revised structure being recommended where increments are payable as a percentage of the pay in the pay band and grade pay thereon and provision has been made for all allowances/benefits to be revised periodically linked to the increase in the price index. The Commission is, therefore, not recommending merger of dearness allowance with basic pay at any stage.

   (b)  Recently Govt. already denied any possibility of merger of DA.

2.  Delay in announcement due to administrative reasons:-

  Finance Minister, who is the main authority to approve the DA was on tour in past.  In practice decision of approval of enhancement in DA can be taken in Cabinet Meeting [meeting of Economic Affairs].  On the constitution of meeting of economic affairs on 2nd affairs the media had expected on 1st April that enhancement in DA will be approved by Govt.  But in absence of Finance Minister the meeting which was chaired by PM deferred the hike in DA including other major decision related to Finance Ministry.

   The next meeting of Cabinet Committee of Economic Affairs was also placed on 4th April but there was no any indication about approval of DA, however govt.  decontrolled the lavy on sugar.

   The decision on hike in DA by CCEA is based on some calculation about impact of enhancement of DA in govt. budget.  The administrative reason for delay may be insufficient calculation or any mis-calculation of impact of enhancement of DA.

   In the conclusion even after the seventh day of the month of April, the enhancement in DA from January, 2013 is yet to be declared by the Government.  On Tuesday or Thursday [traditionally the meeting day of cabinet] decision may be taken by Govt.  This time if formal announcement not made by Govt. and any written approval was got by authority to hike in DA, we expect the direct formal order from Department of Expenditure.  All knows the announcement of DA hike can be delayed but not denied.

Source: www.karnmk.blogspot.in

Dearness Allowance from January 2013 - 6th CPC Recommendations on merger of 50% Dearness Allowance.

   "No any recommendation in 6th CPC Report on merger of 50% Dearness allowance with basic pay at any stage"...

   Dearness Allowance from January 2013 – 6th CPC Recommendation

   As of now nobody knows the correct reason why the government is delaying the approval of DA hike from January 2013. Actually the delay in announcing the dearness allowance helps the people speculate more about the Governments Plan about whether the 50% DA will be merged or not.

   As per the 6th CPC recommendation accepted by the government, the Dearness Allowance supposed to be enhanced from 1st January of every year has to be paid with salary of month of March. The 6th CPC was very much clear about two things; first one is the formula for calculating the quantum of DA to be paid to central government employees and its frequency. Second one is on Merger of 50% Dearness allowance with Basic pay by converting it as dearness Pay.

   Sixth Pay Commission recommendation on Merger of 50% Dearness Allowance and sanctioning of DA to central government employees.

   It has been clearly told in 6th CPC recommendations under the Heading of Dearness Allowance, Chapter no 4.1…

   4.1.18 ……This conversion, however, is not necessary in the revised structure being recommended where increments are payable as a percentage of the pay in the pay band and grade pay thereon and provision has been made for all allowances/benefits to be revised periodically linked to the increase in the price index. The Commission is, therefore, not recommending merger of dearness allowance with basic pay at any stage.

   4.1.19 No real justification exists for revising DA once in 3 months. Accordingly, DA may continue to be sanctioned twice a year as on 1st January and 1st July payable with the salary of March and September respectively for administrative convenience with inflation neutralization being maintained at 100% at all levels.

   As it was the recommendation of 6th CPC , even after the seventh day of the month of April, the quantum of DA to be increased is yet to be declared by the government is quite new for central government employees. But it is evident that ‘announcement of DA hike can be delayed, but Payment of increased Dearness Allowance cannot be denied’.

Source:www.gservants.com

Merger of 50% of DA and DR with basic pay’ – Finance Ministry

   ‘Merger of 50% of DA and DR with basic pay’ – Finance Ministry explained as a reply to a unstarred question in the Parliament on 14th December, 2012.

   The below explanation was presented by the Minister of States for Finance Shri.Namo Narain Meena to the questions regarding merger of DA / DR with basic pay of Central Government employees and Pensioners in the Parliament on 14.12.2012…

   Whether various Associations/ Organisations of Central Government employees demanded merger of 50 per cent Dearness Allowance into the basic pay of Central Government employees and pensioners and the recommendation of the Sixth Central Pay Commission in this regard and action taken by the Government thereto?

   Yes, A number of representations have been received from Associations/Organizations of Central Government Employees/Pensioners and individuals demanding merger of 50% of Dearness Allowance/ Dearness Relief with basic pay/pension respectively. The demand has been considered by the Government and not agreed to since the 6th Central Pay Commission has not recommended as such.

   The 6th Central Pay Commission did not recommend merger of dearness allowance with Basic Pay at any stage. Government accepted this recommendation vide Government of India Resolution dated 29.08.2008.

   (Note : Merger 50% of Dearness Allowance with basic pay to the employees of Central Public Sector Enterprises (CPSEs) following 1997 Industrial Dearness Allowance (IDA) pattern of scales of pay with effect from 1.1.2007.)

Decision on hiking dearness allowance deferred.

   Decision on hiking dearness allowance deferred

   The government on Tuesday deferred a decision on hiking dearness allowance (DA) of central government employees to 80 per cent, from 72 per cent at present.

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

   "The proposal on DA has been deferred as the Finance Minister was not present," Information and Broadcasting Minister Manish Tewari told reporters after the Cabinet meeting chaired by Prime Minister Manmohan Singh here.

   Finance Minister P Chidambaram is on an official visit to Japan.

   A hike in DA has been proposed with effect from January 1, 2013, according to sources.

   The government had hiked DA to 72 per cent in September last year. The increase was with effect from July 1, 2012.

   The Confederation of Central Government Employees has demanded merger of up to 50 per cent DA with the basic pay and setting up the seventh pay commission at the earliest.

   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 those are paid as proportion to the basic pay.

Source:economictimes

Expected DA from Jul-2013. AICPIN for the month of January-2013. Consumer Price Index for Industrial Workers (CPI-IW) – January, 2013.

No. 5/1/2013-CPI
GOVERNMENT OF INDIA
MINISTRY OF LABOUR & EMPLOYMENT
LABOUR  BUREAU

CLEREMONT, SHIMLA-171004
DATED: the 28th February, 2013

Press Release

Consumer Price Index for Industrial Workers (CPI-IW) – January, 2013

   The All-India CPI-IW for January, 2013 rose by 2 points and pegged at 221 (two hundred and twenty one). On 1-month percentage change, it increased by 0.91 per cent between December and January compared with 0.51 per cent between the same two months a year ago.

   The largest upward contribution to the change in current index came from Housing Group which increased by 3.53 per cent, contributing 1.28 percentage points to the total change. This was followed by Miscellaneous and Food groups with 0.74 and 0.26 per cent increase respectively contributing 0.32 and 0.28 percentage points to the change. At item level, largest upward pressure came from Rice, Wheat & Wheat Atta, Groundnut Oil, Eggs (Hen), Fish Fresh, Goat Meat, Poultry (Chicken), Onion, Tea (Readymade), Firewood, Auto Rickshaw Charges, Bus Fare, Rail Fare, etc. However, this was compensated by Arhar Dal, Potato, Tomato, Other Green Vegetables, Sugar, Electricity Charges and Flower/Flower Garlands by putting downward pressure on the index.

   The year-on-year inflation measured by monthly CPI-IW stood at 11.62 per cent for January, 2013 as compated to 11.17 per cent for the previous month and 5.32 per cent during the corresponding month of the previous year. Similarly, the Food inflation stood at 14.08 per cent against 13.53 per cent of the previous month and 0.49 per cent during the corresponding month of the previous year.

   At centre level, Durgapur recorded the largest increase of 18 points followed by Jharia (10 points), Godavarikhani (9 points), Goa and Surat (8 points each), and Chandigarh (6 points). Among others, 5 point rise was registered in 3 centres, 4 points in 6 centre, 3 points in 12 centres, 2 points in 13 centres and 1 point in 11 centres. On the contrary, Labac-Silchar and Mariani-Jorhat centres reported a decline of 2 points each. The indices of Jalandhar, Rourkela, Sholapur and Kolkata were also declined by 1 point each. Rest of the 21 centres’ indices remained stationary.

   The indices of 39 centres are above All-India Index and other 38 centres’ indices are below national average. The index of Mysore centre was at par with all-India index.

   The next index of CPI-IW for the month of February, 2013 will be released on Thursday, 28 March, 2013. The same will also be available on the office website www.labourbureau.nic.in.

sd/-
(S.S. NEGI)
DIRECTOR

Source:http://www.labourbureau.nic.in/Press_Note_CPIW_E_Jan2013.pdf

MERGER OF DA IN BASIC PAY.

GOVERNMENT OF INDIA
MINISTRY OF FINANCE

LOK SABHA

UNSTARRED     QUESTION NO    3632

ANSWERED ON      14.12.2012

MERGER OF DA IN BASIC PAY

   3632 .    Shri SOMENDRA NATH MITRA
   Will the Minister of    FINANCE     be pleased to state:-

   (a)    whether various Associations/ Organisations of Central Government employees demanded merger of 50 per cent Dearness Allowance into the basic pay of Central Government employees and pensioners;

   (b)    if so, the details thereof and reaction of the Government thereto; and

   (c)    the recommendation of the Sixth Central Pay Commission in this regard and action taken by the Government thereto?

ANSWER

MINISTER OF STATE IN THE MINISTRY OF FINANCE (E&FS) (SHRI NAMO NARAIN MEENA)

   (a): Yes Sir.

   (b): A number of representations have been received from Associations/Organizations of Central Government Employees/Pensioners and individuals demanding merger of 50% of Dearness AHowance/ Dearness Relief with basic pay/pension respectively. The demand has been considered by the Government and not agreed to since the 6th Central Pay Commission has not recommended as such.

   (c): The 6th Central Pay Commission did not recommend merger of dearness allowance with Basic Pay at any stage. Government accepted this recommendation vide Government of India Resolution dated 29.08.2008.

source-http://loksabha.nic.in/

Expected DA from January 2013 - AICPIN for the month of December 2012.

Consumer Price Index Numbers for Industrial Workers (CPI-IW) December 2012

   The All-India CPI-IW for December, 2012 rose by 1 point and pegged at 219 (two hundred and nineteen). On 1-month percentage change, it increased by 0.46 per cent between .November and December compared with (–)1.01 per cent between the same two months a year ago.

   The largest upward contribution to the change in current index came from Miscellaneous Group which increased by 1.08 per cent, contributing 0.49 percentage points to the total change. This was followed by Clothing, Bedding & Footwear and Fuel & Light groups with 1.17 and 0.92 percent respectively contributing 0.13 and 0.10 percentage points to the change. At item level , largest upward pressure came from Rice, Wheat Atta, Groundnut oil, Fish Fresh, Goat Meat, Poultry (Chicken), Onion, Tea (Leaf), Tea (readymade),Electricity charges, Firewood, Sweater, E.S.I. contribution, Medicine (Allopathic), Private Tution Fees, us fare, Flower/ Flower Garlands, Tailoring Charges, etc.

   The largest downward contribution to the change in current index came from Vegetables & Fruits with a decline of (-) 8.33 per cent contributing (-) 1.21 percentage points to the total change.

   The year-on-year inflation measured by monthly CPI-IW stood at 11.17 per cent for December, 2012 as compared to 9.55 per cent for the previous month and 6.49 per cent during the corresponding month of the previous year. Similarly, the Food inflation stood at 13.53 per cent against 10.85 per cent of the previous month and 1.97 per cent during the corresponding month of the previous year.

   At centre level, Hubli Dharwar recorded the largest increase of 10 points followed by Quilon (8 points) and Mundalakkayam and Ernaculam (7 points each) and Mysore (5 points). Among others, 4 per cent rise was registered in 2 centres, 3 points in one centre, 2 points in 11 centres and one point in 12 centres. Doom Dooma Tinsukiya centre reported a decline of 5 points followed by Jalpaiguri and Faridabad 4 points each. Among others 6 centres registered a fall of 3 points, 11 centres registered a fall of 2 points and 13 centres registered a fall of 1 point. Rest of the 14 centres indices remained stationary.

   The indices of 37 centres are above All-India Index and other 37 centres’ indices are below national average. The indices of Jabalpur, Bengaluru, Chandigarh and Haldiya remained at par with all-India index.

   The next index of CPI-IW for the month of January, 2013 will be released on Thursday, February 28, 2013 and will be uploaded on the office website www.labourbureau.nic.in on the same day.

Source: PIB

Grant of Dearness Allowance to the Teaching and Non—teaching employees of Non-Government Aided/Sponsored Education Institutions.

Government of West Bengal
School Education Department
Planning & Budget Branch
Bikash Bhavan, Salt Lake, KolKata-700 091.

No. 10(30) -SE(P&B)/5B-37/2009

Dated: 7th January, 2013.

Sub: Grant of Dearness Allowance to the Teaching and Non—teaching employees of Non-Government Aided/Sponsored Education Institutions who are in the pre-revised scale of pay/Employees of Statutory Bodies/Govt. Undertakings/ Local Bodies etc. with effect from 1st January, 2013.

   The undersigned is directed by order of the Governor to say that the Governor is pleased to direct that all the whole time approved employees of Statutory Bodies/Govt. Undertakings /Local Bodies etc. under the administrative control of this Department, who are in receipt of Dearness Allowance at State Government rates i.e. 45% of Band Pay and Grade Pay taken together, with effect from January 1st, 2012, shall draw Dearness Allowance @52% with effect from 1st January, 2013.

   2. The Dearness Allowance sanctioned hereinabove shall be rounded off to the nearest rupees, in each case.

Expected Dearness Allowance from January 2013 vs AICPIN-IW

   The rate of dearness allowance payable to central government employees might be enhanced from 72% to 80% with effect from January 2013

   All India Consumer Price Index Number for Industrial Workers is the only Index watched keenly by each and every Central Government Employees now. Because the rate of Dearness allowance granted twice in a year for cg employees is determined by this Index only. It is irony that no one is happy to see the hike in prices of essential commodity, but all the government servants are eagerly awaiting to know how much the rate of Dearness allowance will be increased at the end of every 12 months from the month of January and July. The interesting thing to be noted in dearness allowance vs AICPIN_IW is that the AICPIN-IW reflects the increase in the prices of basket of essential commodities, whereas, the rate of dearness allowance reflects the increase or decrease in AICPIN-IW. It is quite obvious that the AICPIN – IW is always in the trend of increasing mode due to the price rise, so as the rate of dearness allowance is also increasing twice in a year.

GRANT OF DEARNESS ALLOWANCE TO THE STATE GOVERNMENT EMPLOYEES AND FURTHER AD-HOC INCREASE IN THE WAGES OF DAILY RATEED WORKERS UNDER THE GOVERNMENT WITH EFFECT FROM JANUARY 01, 2013.

GOVERNMENT OF WEST BENGAL
FINANCE DEPARTMENT
AUDIT BRANCH
WRITERS’ BUILDINGS, KOLKATA.

NO. 10615-F(P)

DATED, THE 31ST DECEMBER, 2012.

MEMORANDUM

SUB: GRANT OF DEARNESS ALLOWANCE TO THE STATE GOVERNMENT EMPLOYEES AND FURTHER AD-HOC INCREASE IN THE WAGES OF DAILY RATEED WORKERS UNDER THE GOVERNMENT WITH EFFECT FROM JANUARY 01, 2013.

   The Governor is pleased to decide that the whole time State Government Employees drawing basic pay (i.e. Band Pay + Grade Pay, NPA, if any) upto ` 80,000/- shall draw Dearness Allowance @ 52% with effect from January 01, 2013. The calculation of Dearness Allowance shall be made taking into account the revised Band Pay, Grade Pay & NPA, if any, but shall not include any other types of pay.