Dearness Allowance has Reached to 100%, Cabinet Committee Approved 10% Dearness Allowance for Central Government Employees and Pensioners

Release of additional installment of dearness allowance to Central Government employees and dearness relief to Pensioners, due from 1.1.2014 

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 01.01.2014, in cash, but not before the disbursement of the salary for the month of March 2014 at the rate of 10 percent increase over the existing rate of 90 percent. 

Hence, Central Government employees as well as pensioners are entitled for DA/DR at the rate of 100 percent of the basic with effect from 01.01.2014. The increase is in accordance with the accepted formula 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 Rs. 11074.80 crore per annum and Rs. 12920.60 crore in the financial year 2014-15 ( i.e. for a period of 14 months from January 2014 to February 2015). 

Source: PIB

Centre to hike DA by 10% for second time, will make it 100%

Centre is likely to announce next month a hike in dearness allowance by 10 per cent to 100 per cent, benefiting about 50 lakh employees and 30 lakh pensioners.

It would be the second double digit DA hike in a row. The government had announced a hike of 10 per cent to 90 per cent in September last year, effective from July 1, 2013.

According to an official source, the preliminary assessment suggests that dearness allowance hike will not be less than 10 per cent and would be effective from January 1 this year.

He said the exact percentage hike in DA could be calculated only when the revised all India Consumer Price Index for Industrial Workers (CPI-IW) for December is released on February 28.

According to the provisional data released by government on January 31, the retail inflation for factory workers for the month of December stood at 9.13 per cent.

As per practice, the government uses CPI-IW data of the past 12 months to arrive at a quantum for the purpose of any DA hike. Thus, the retail inflation for industrial workers between January 1 to December 31, 2013 would be used to take a final call on the matter.

"It would be 10 per cent this time and would be announced in March," Confederation of Central Government Employees President K K N Kutty told PTI.

"Besides, raising DA to 100 per cent, the government should revise the pay and merge DA with basic pay", he said.

As per practice, the DA is merged with basic pay when it breaches the 50 per cent mark. DA merger helps employees as their other allowances are paid as a proportion of basic pay.

Kutty informed the central government employees would go on a two-day strike from February 12 and demand pay revision which would be possible through constituting the 7th Pay Commission. The government has announced setting up of the commission last year.

He said: "This DA hike won't help much as actual rise in the cost of living is about 300 per cent as on January 1, 2014. But they would pay us 100 per cent as DA."

Source:http://economictimes.indiatimes.com/news/economy/finance/centre-to-hike-da-by-10-for-second-time-will-make-it-100/articleshow/29757806.cms

Expected DA from Jan 2014 - Additional DA from Jan 2014 likely to hike by 11%

Expected DA from Jan 2014 - Additional DA from Jan 2014 likely to hike by 11% 

The one more and another additional Dearness allowance to Central Government employees and Pensioners from Jan 2014 will be announced in the middle of March 2014. 

This is too early and predict the enhancement in percentage of Dearness allowance with effect from January 2014. The prediction and announcement of this hike make us cool, that the additional DA will jump to 101% and another word, an additional DA would be 11%. 

But, still we have to wait for one more month, that the magic number of AICPIN would be increased by 3% and more..! From the existing level of the AICPIN is now 243, if it becomes 246 in end of December 2013, out prediction will be right…or otherwise certainly we would cross century in total Dearness allowance… 

The table describes the prediction of additional DA from Jan 2014…

Month	Year	AICPIN (IW) BY 2001=100	Points Increasing in AICPIN	Total	Average	App. DA	DA
Jun	2013	231	3	2648	220.67	90.62	90
Jul	2013	235	4	2671	222.58	92.28
Aug	2013	237	2	2694	224.5	93.93
Sep	2013	238	1	2717	226.42	95.59
Oct	2013	241	3	2741	228.42	97.32
Nov	2013	243	2	2766	230.5	99.12
Dec	2013	Expected 246	3	2793	232.75	101.06	101

Source : http://7thpaycommissionnews.in/expected-da-from-jan-2014-additional-da-from-jan-2014-likely-to-hike-by-11/ 

Merger of Dearness Allowance with the Pay of the Central Government Employees – reg.

Prime Minister’s Office
New Delhi – 110101

Sub: LETTER OF Sh. M RAGHAVAIAH
NFIR, 3, CHELMSFORD ROAD, NEW DELHI-55

   A letter dated 27-09-2013 received in this office from Sh. M RAGHAVAIAH is forwarded herewith for action as appropriate.

[RITU SHARMA]
SECTION OFFICER

NFIR
National Federation of Indian Railwaymen
3, CHELMSFORD ROAD, NEW DELHI- 110055
Affiliated to:
Indian National Trade Union Congress (INTUC)
International Transport Workers’ Federation (ITF)

No. 1/5 (A)

Dated: 27.09.2013

Hon’ble Prime Minister of India,
Raisina Hill,
South Block,
New Delhi.

Respected Sir,

Sub:- Merger of Dearness Allowance with the Pay of the Central Government Employees – reg.

   While thanking you for the decision for appointment of 7th Central Pay Commission, we request you to kindly appreciate that the Dearness Allowance paid to the Central Government employees had crossed 50% of pay as on 01.01.2011. This portion of the Dearness Allowance needs to be merged with the Pay for all purposes as was done in the year 2004.