Release of additional installment of dearness allowance to Central Government employees and dearness relief to Pensioners, due from 1.7.2013.

Press Information Bureau
Government of India
Ministry of Finance

20-September-2013

   The Union Cabinet today approved the proposal to release an additional installment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners with effect from 01.07.2013, in cash, at the rate of 10 per cent increase over the existing rate of 80 per cent.

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.

CONFEDERATION CALLS FOR A STRONG PROTEST AGAINST THE INORDINATE DELAY IN GRANTING 8% DA TO CG EMPLOYEES BY GOVERNMENT.

CONFEDERATION OF
CENTRAL GOVT. EMPLOYEES & WORKERS
A-2/95, Manishinath Bhawan, Rajouri Garden,New Delhi-110 027
Website:www.confederationhq.blogspot.com.
Email:Confederation06@Yahoo.co.in
Tel: 011-2510 5324:  Mobile: 98110 48303

No. Conf/27 /2013 - Dated 17th April 2013

Comrades,
 
DELAY IN GRANT OF DA - HOLD PROTEST DEMONSTRATION ON 23RD APRIL 2013

            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

 
Yours fraternally
Sd/-
(KKN Kutty)
Secretary General

 
CONFEDERATION OF
CENTRAL GOVT. EMPLOYEES & WORKERS
A-2/95, Manishinath Bhawan, Rajouri Garden,New Delhi-110 027
Website:www.confederationhq.blogspot.com.
Email:Confederation06@Yahoo.co.in
Tel: 011-2510 5324:  Mobile: 98110 48303

 
17th April 2013
 
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,

 
Yours faithfully

Sd/-
(KKN Kutty)
Secretary General

 
Source:www.confederationhq.blogspot.in

Dearness allowance from Jan 2013, will be declared only after the Finance Minister 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.

Source-www.gservants.com

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.

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.