No merger of D.A. but seventh pay commission likely this year.

   According to our sources in New Delhi, there is no chance of any merger of Dearness Allowance with basic pay as demanded by the associations. But the Government is considering the formation of seventh pay commission.

   The seventh CPC is scheduled to be effective from 1.1.2016 and if it is formed this year, there will be ample time to finalize it's recommendations. Moreover, if it is not effective from an earlier date, the Govt. will be free from any burden of paying arrears, which may adversely effect the fiscal situation.

   Most significantly, in the eve of general election, the Govt. may spread a "feel good" situation among the employees without having to pay an extra penny from the exchequer.

   In the other hand merging D.A. with basic pay will lead to a considerable expense and as there is definite negative recommendation of sixth CPC in this respect, Govt. can easily deny this demand. After formation of seventh CPC, if the ruling party fails to come back in the corridors of power, the entire liability will have to be borne by the new Govt. So, it's a win win situation of the ruling party and most likely, it will be announced in the later half of the year.

Source:http://paycommissionupdate.blogspot.in/2013/04/no-merger-of-da-but-seventh-pay.html#more

Grant of Dearness Allowance to State Government employees.

GOVERNMENT OF RAJASTHAN
FINANCE DEPARTMENT
(RULES DIVISION)

No. F. 6(1)FD(Rules)/2008

Jaipur, dated: 19 APR 2013

ORDER

Sub:- Grant of Dearness Allowance to State Government employees.

   The Governor is pleased to order that the existing rate of Dearness Allowance payable to the State Government employees, drawing pay in Rajasthan Civil Services (Revised Pay) Rules, 2008, under Finance Department Order No. F.6(1)FD(Rules)/2008 dated 27.09.2012 shall be revised from 72% to 80% with effect from 01.01.2013.

   The term ‘Pay’ for the purpose of calculation of Dearness Allowance shall be the Basic Pay i.e. sum of pay in running pay band and grade pay drawn and shall not include any other type(s) of pay like Special Pay or Personal Pay, etc.

   The payment on account of Dearness Allowance involving fraction of 50 paisa and above may be rounded off to the next higher rupee and the fraction of less than 50 paisa may be ignored.

   The amount of increase in Dearness Allowance for the period from 01.01.2013 to 31.03.2013 shall be credited to the General Provident Fund Account of the respective employees and cash payment shall be admissible from 01.04.2013 i.e. salary for the month of April, 2013 payable on 01.05.2013.

   The arrear of DA from 01.01.2013 to 31.03.2013 to the employees recruited to the Civil Services on or after 01.01.2004 and who are governed by Contributory Pension Scheme, shall be paid in cash.

By order of the Governor,

Sd/-
(Akhil Arora)
Secretary, Finance (Budget)

Source:http://finance.rajasthan.gov.in/RULES/F6(1)-19.04.2013.pdf

Release of additional instalment of Dearness Allowance to central government employees and Dearness Relief to pensioners, due from 1.1.2013

   Release of additional instalment of Dearness Allowance to central government employees and Dearness Relief to pensioners, due from 1.1.2013

   The Union Cabinet today gave its approval to release an additional instalment of Dearness Allowance (DA) to central government employees and Dearness Relief (DR) to pensioners with effect from 01.01.2013 at the rate of 8 percent over the existing rate of 72 percent.

   Thus, the combined impact on the exchequer on account of both DA and DR would be of the order of Rs.8629.20 crore per annum and Rs. 10067.36 crore in the financial year 2013-14 (that is for a period of 14 months from January, 2013 to February, 2014).

Source: PIB

CABINET APPROVES 8% DEARNESS ALLOWANCE FOR CENTRAL GOVERNMENT EMPLOYEES AND PENSIONERS..

   The Union Cabinet today in its meeting, gave its approval to release an additional instalment 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 increase is in accordance with the accepted formula, which is based on the recommendations of the 6th Central Pay Commission.

   Necessary order for increasing Dearness Allowance will be issued by Finance Ministry soon. The resultant arrears amount on account of the increased Dearness Allowance for the month of January , Febraury and March will be paid to central government employees by the respective Ministry/Department after the issuance of the order for granting dearness allowance by  Ministry of Finance .

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.)

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 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.

The Expected Dearness Allowance with effect from January 2013

LIKELY INCREASE IN DA FROM JANUARY 2013 IS 8%

   Central Government Employees, Pensioners and family Pensioners may get Dearness Allowance of 80% with effect from 1st January 2013

   The price index which is called as AICPI – IW (All India Consumer price Index for industrial workers with the base as 2001=100) for the month of September 2012 has been issued by Government.

   This is the table All India consumer price index AICPI-IW for the period from January 2012 to September 2012

DA for Central Government Employees.

   The Union Cabinet Yesterday approved to release additional installment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners with effect from 01.07.2012, representing an increase of 7 per cent over the existing rate of 65 per cent of the Basic Pay/Pension, to compensate for price rise.

   The increase is in accordance with the accepted formula, which is based on the recommendations of the 6th Central Pay Commission.

Madhya Pradesh Government announces 7% D.A.

   BHOPAL: Barely a fortnight after enhancing travel facilities and extending air travel to state government employees, the Madhya Pradesh government announced another bonanza of 7% to its employees. The DA would be paid with effect from August 1, 2012.

   The decision was taken at a meeting of the state cabinet presided over by the chief minister Shivraj Singh Chouhan here on Tuesday. The cabinet also approved the revised allowances and facilities to government employees in the context of the recommendations of the state pay commission.

   A government spokesperson said that the cabinet cleared the pay commission's recommendations and revised house rent allowance has been sanctioned to the employees residing in various cities and towns on the basis of 2001 population. Accordingly, 10% house rent allowance (percentage of total of pay band and grade pay) will be given in cities with over 7 lakh population, 7% in cities with 3-7 lakh population, 5 % in cities with 50,000 to 3 lakh population and 3% to employees in cities with less than 50,000 population.

Grant of Dearness Allowance to the employees of the State Government w.e.f. 01.01.2012.

Fin(C)- B(7)-2/2006
Government of Himachal Pradesh
Finance (Regulations) Department

Dated Shimla-171 002, the 21st August, 2012.

OFFICE MEMORANDUM

Subject:- Grant of Dearness Allowance to the employees of the State Government w.e.f. 01.01.2012.

   In continuation of this Department’s OM of even number dated the 21st March,2012, the Governor, Himachal Pradesh, is pleased to enhance Dearness Allowance from the existing rate of 58% to 65% with effect from 01.01.2012 in respect of the regular employees of the State Government.

   2. This additional installment of Dearness Allowance of 7% (7 percent) shall be paid in cash with the salary of August, 2012 payable on 1st September,2012 and the arrears accrued from 01.01.2012 to 31.7.2012 shall be credited in the GPF Accounts of the employees with the salary of August, 2012. The interest on this account shall accrue w.e.f. 01.09.2012. In case of Government employees who have retired or who have closed GPF accounts and employees who are governed under Contributory Pension Scheme, the arrears on account of release of additional installment of DA w.e.f .01.01.2012 will be paid in cash.

Jammu & Kashmir Government approves 7% D.A. for it's employees.

   Government Thursday approved release of 7 per cent Dearness Allowance in favour of its employees from January, this year besides according sanction to the constitution of State Planning Board – to function as advisory and recommendatory body so as to help the state government to formulate effective policies in key areas.

   It was reliably learnt that the state cabinet, which met here this evening under the chairmanship of Chief Minister Omar Abdullah, approved the release of 7 per cent DA installment in favour of the employees. The issue was not on the agenda of the meeting but a cabinet note was referred by the finance department at the last movement.

   It could not be ascertained whether the payment of the DA would be in cash or deposited in GP Fund of the employees.

   The Cabinet also gave its nod to release of Cost Living Allowance (COLA) for the period ending June 2010 in favour of State owned Public Sector Employees, creation of Special Purpose Vehicle (SPV) for the International Trade Centre (ITC) at Pampore.

   The Cabinet accorded Administrative Approval for construction of residential flats for employees at Pampore.

Government employees to get 7 percent additional dearness allowance.

   Over four-million central government employees will go home with an increased pay packet from now, with the union cabinet Friday hiking the dearness allowance to 65 percent of the basic salary from the existing 58 percent with retrospective effect from  1st January this year.

   The hike, about 7 percent from the present rates, will also be applicable to central government pensioners.

   The increase in the allowances will cost the government exchequer Rs.7,474.53 crore annually, according to the decision taken at the cabinet meeting presided by Prime Minister Manmohan Singh here.

Release of additional instalment of Dearness Allowance and Dearness Relief.

   The Union Cabinet today gave its approval to release an additional instalment of Dearness Allowance (DA) to central government employees and Dearness Relief (DR) to pensioners w.e.f. 1.1.2012 representing an increase of 7% over the existing rate of 58% of the Basic Pay/Pension, to compensate for price rise. The increase is in accordance with the accepted formula, which is based on the recommendations of the 6th Central Pay Commission. The combined impact on the exchequer on account of both dearness allowance and dearness relief would be of the order of Rs.7474.53 crore per annum and Rs.8720.32 crore in the financial year 2012-13 (i.e. for a period of 14 months from January, 2012 to February, 2013).

Source: PIB

Additional DA from 1.1.2012, Cabinet likely to approve today.

   We expected the same that didn’t happen last week, but Today Cabinet may approve 7% additional Dearness allowance from 1.1.2012 for Central Government staff and pensioners.

   Normally, the decision on announcing DA to the central government employees was to take place on the 2nd week of March and September every year. But this procedure was being postponed for various reasons. Last year, the announcement of DA from July 2011 was also postponed. The decision on the additional DA from March 2012 is expected to be finalized on 22.03.2012 at the Cabinet meeting scheduled on that day. 

   As of now, an increase of 7% is expected which will raise the DA from 58% to 65%. As usual, the DA for March will be paid in April and the arrears for the other two months will be paid separately.