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 .

Today Cabinet may hike dearness allowance by 8%

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

   The move to increase DA 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.