Expected DA from July 2014 - Looks like the curiosity surrounding the expected DA is fast receding

Expected DA from Jul 14 - Looks like the curiosity surrounding the expected DA is fast receding..!

One of the possible reasons for the dampening interest could be the fact that unlike last time, there is not going to be a DA hike. Although it is very well known that the hike is based on price rise and inflation, it probably feels to them as if something was lost.

This time there is no double-digit increase. It is only going to be a single-digit hike.

At the most, one can expect an increase of 7%. That too is not for sure. All that depends on the soon-to-be announced AICPIN points for balance months.

After announcing the second additional DA for the year 2014, there are only two instalments left. With the instalments of January 2015 and July 2015, the 6^th CPC comes to a close.

The next additional DA will be based on the 7^th CPC.

Additional Dearness Allowance formula could be changed in the 7^th CPC. They could announce a new Base Year. There could also be a change in the 115.76 yardstick. Nothing can be said for certain this time.

There is already a proposal to change the Labour Bureau Base Year from ‘CPI-IW 2001=100’ to ‘CPI-IW 2015 =100’.  The current series of CPI-IW with base 2001=100 was constructed on the basis of employment data in seven sectors namely, Registered Factories, Mining, Plantations, Ports & Docks, Public Motor Transport, Electricity Generation & Distribution Establishments and Railways sector. The current series comprises of a basket of about 370 items and 289 price collection markets spread across 78 centres of the country.

The new series of CPI-IW will cover 7 sectors and 88 cities in 27 states have been selected for the new recommendation of CPI-IW (2015-100). It is worth mentioning that a special Standing Tripartite Committee (STC) under the chaired by Prof. G.K. Chadda has been created in this regard.

DA Table for the last one year…

Mon/Year	AICPIN	App. DA	DA	DA Hike
Dec-12	219	80.83	80	8
Jan-13	221	82.49	82
Feb-13	223	84.22	84
Mar-13	224	85.87	85
Apr-13	226	87.38	87
May-13	228	88.97	88
Jun-13	231	90.62	90	10
Jul-13	235	92.28	92
Aug-13	237	93.93	93
Sep-13	238	95.59	95
Oct-13	241	97.32	97
Nov-13	243	99.12	99
Dec-13	239	100.56	100	10

Source:http://www.employeesnews.in/2014/04/expected-da-from-july-2014-looks-like.html

Enhancement in the rates of various allowances by 25% consequent upon Dearness Allowance crossing 100%

A.I.R.F.

All India Railwaymen's Federation

4, State Entry Road,

New Delhi-110055

India.

No.AIRF/13 

Dated: March 10, 2014

The Secretary(E),

Railway Board,

New Delhi

Sub: Enhancement in the rates of various allowances by 25% consequent upon Dearness Allowance crossing 100%

Ref.: Railway Board’s letter No.F(E)1/2011/AL-28/18 dated 13.06.2011(RBE No.87) and E(P&A)I-2011/SP-l/Misc.1 dated 13.06.2011 (RBE No.88/2011)

The VI CPC in their report had recommended that certain allowances, viz. Children Education Allowance, National Holiday Allowance, Daily Allowance, Washing Allowance, Breakdown Allowance, Special Compensatory Allowance, Cycle Maintenance Allowance, Fixed Conveyance Allowance, Road Mileage Allowance, Special Allowance to various categories of staff etc. etc.,

should be increased by 25% whenever Dearness Allowance crosses 50%, and this recommendation was duly accepted by the Government of India.

Based on the above recommendation of the VI CPC, these allowances have since been enhanced by 25% w.e.f. 01.01.2011, i.e. from the date, Dearness Allowance having been crossed 50%.

Now, Dearness Allowance has crossed 100% w.e.f. 01.01.2014, there is, therefore, gross justification that the above allowances be further enhanced by additional 25%, as Dearness Allowance has again crossed the value of 50% after enhancement of these allowances w.e.f.01.01.2011.

The Board are, therefore, requested to issue necessary instruction to this effect an early date.

Yours faithfully,

Sd/-

(Shiva Gopal Mishra)

General Secretary

AIRF

Central Government should pay the dearness allowance of state government employees as well – Mamata Banerjee

Central Government should pay the dearness allowance of state government employees as well – Mamata Banerjee

W.B Government Employees would be able to avail themselves of cashless hospitalisation facility of up to Rs 1 lakh

Centre should come forward and pay the dearness allowance of state government employees as well, West Bengal Chief Minister Mamata Banerjee demanded today.

“Whenever the Centre announces DA, state government employees should be given the same on a par (with central government employees).

“They (Centre) give it (to central government employees) before elections. Will others (state government employees) suck their thumbs?” Banerjee asked.

“We want the Centre to pay the DA for (state government) employees,” Banerjee said. She added that paying DA cost Rs 6,900 crore to the state exchequer.

“How will we be able to afford it when the central government is taking all the money from us?” she asked.

Speaking at a convention of state government employees organised under the banner of the Paschimbanga Sarkari Karmachari Federation, Banerjee said the matter had also been taken up with the Finance Commission.

She reiterated her charge that the Union government had stopped funds for various central schemes like Pradhan Mantri Gram Sadak Yojana and the Mahatma Gandhi National Rural Employment Guarantee Scheme.

“There should be a tax for those who lie,” she said.

She also added that restructuring should be done for the interest on loans taken from the Centre by the previous Left Front government.

“Why should we pay for the faults of CPI(M)?” she asked. Criticising the Left-affiliated coordination committee of state government employees, Banerjee said the body should now be dismantled as it did no work.

“They have no work besides criticising others. They are shameless. They did no work for the last 34 years and now, too, are not working,” she said while adding that such employees were holding up various files.

She, meanwhile, announced that housing loans would be restarted for the welfare of employees. Rs 100 crore has been earmarked for the same under a scheme entitled ‘Akanksha’.

A health scheme has also been extended for another two years under which government employees would be able to avail themselves of cashless hospitalisation facility of up to Rs 1 lakh.

“We have added new hospitals to the list and also (expanded the disease cover),” Banerjee said.

As to contractual employees, she said none would lose jobs but, due

Source :http://www.financialexpress.com/news/centre-should-pay-da-of-state-govt-employees-as-well-mamata-banerjee/1228462

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

Merger of 50% percent DA may soon be considered by Central Government –Sources

Sources close to the Central Government Employees Federations told that Merger of 50% DA will soon be considered by Central Government before the budget session of Parliament in February 2014. According to the sources, the central government is likely to consider the central government employees  demand for merging of 50 % DA, for the reason that the DA will be crossing 100% level after January 2014.

The rate of dearness allowance to be paid to govt servants has been increasing consistently due to the rise in the prices of essential commodities for the past two years. In 2011 the rate of DA was at 50 % level. Since then all the Federation demanded the central government to merge the 50 Percent DA with basic Pay. But the government did not accept this demand to merge the DA with basis pay, as it was not recommended by sixth CPC.

The demand would be considered in view of parliament elections

But federations kept on demanding the government that raising dearness allowance alone will not help to compensate the alarming rate of price rice. So they urged the government to consider their demand favorably. It is believed that after the defeat in the election of four state legislative councils, the UPA government has decided to reconsider about its decision on the issues which directly affects the common public. The high command of the ruling party thought that the reason for their defeat in the state election is mainly because of their government failed to contain the price rise. The gap between common public and UPA government has been considerably increased. To correct these failures the UPA government decides to do something to attract the voters.

After announcing the government’s proposal to constitute the 7th pay commission, the community of central government employees has been convinced to have soft view on this government. Further the 50 lakh central government employees would be made happy if the 50% DA is merged with Basic Pay. It is told that , as the central government staff association and federations demanding it very seriously, in case the government decides go with this demand, there will be around one crore voters will be in favour of UPA government. So the government may consider the demand of merging of 50% DA with basic Pay in view of forthcoming Parliament elections.

Allowances will have no impact on merging DA with basic Pay

The sources, associated with National Council JCM, said that the government initially was not willing to consider this demand as some allowance and advances have been raised by 25% whenever the DA crosses 50% level as per the sixth CPC recommendation. But federations insisted that the allowances, which are raised to 25 % level when DA crosses 50%, will have no impact on merging DA with basic pay. The only allowance will have an increase when Basic Pay increases are HRA. No other allowances will be increased and other entitlement of the respective Grade Pay will not be revised as the 50% DA to be merged will be kept under separate component like it was treated in 5CPC as Dearness Pay. “There is no need to worry about financial implications, as the 50% DA will be paid by just changing its nomenclature as Dearness Pay”, said sources.

50% DA merger to be decalered before DA crosses 100%

Further, it has been informed that it is good enough for the government to announce its decision before declaring the next additional installment of DA. Because the AICPIN for Industrial workers for the Month of December 2013 is awaited to determine the rate of dearness allowance to be paid from January 2014.The result of last 11 months AICPIN shows that DA will definitely be raised by 10 % from existing 90% level. So the rate of DA will be 100% with effect from 1st January 2014. After the DA increased to 100%, the demand for 50% DA merger will have to change its avatar. Probably the demand would be for 100% DA merger. So the federations expect the government may consider 50% DA merger soon.

However, decision if any in this regard should be taken before the announcement of election for parliament. It is expected that election announcement for parliament will be made by the end of February 2014. Before that,  the announcement of 50% DA merger is expected from central government.

Source:http://www.gservants.com/2014/01/15/merger-50-percent-da-may-soon-considered-central-government-sources/

Confederation sought merger of 100 percent DA with effect from Jan 2014

Confederation sought merger of 100 percent DA with effect from Jan 2014

A workshop organised by the Confederation of Central Government Gazetted Officers’ Organisations, Tamil Nadu region, has finalised the common minimum demands to be placed before the 7 Central Pay Commission, including a just and equitable pay at the entry level of Group ‘B’ officers.

Govt. workers want DA to be merged with salary.

   Government employees have asked the Centre to consider merging dearness allowance with their pay, arguing that the Sixth Pay Commission -- quite like the Centre -- could not have anticipated the high inflation that has eroded real wages over the last decade.

   Since 2006 – when the recommendations of the last pay commission came into force – the dearness allowance has increased to 90%, a reflection of the high inflation environment that employees have to cope up with.

   The demand was made at a preliminary meeting held between the department of personnel and the employee representatives to discuss the proposed Seventh Pay Commission announced by Prime Minister Manmohan Singh in September.

Payment of Dearness Allowance to Haryana Government Employees on unrevised scales of pay effective from 01.07.2013.

No. 4/1/2009-5FR/30524
GOVERNMENT OF HARYANA
FINANCE DEPARTMENT

Chandigarh, the 15th November, 2013

To
I. All Heads of Department, All Commissioners of Divisions,
All Deputy Commissioners and Sub Divisional Officers (Civil) in Haryana.
2. The Registrar, Punjab & Haryana High Court, Chandigarh.

Subject: Payment of Dearness Allowance to Haryana Government Employees on unrevised scales of pay effective from 01.07.2013

Sir/Madam,

   I am directed to invite a reference to Finance Department circular letter No. 1/2009-5FR/23648 dated 2nd September, 2013 on the subject noted above and to say that the Governor of Haryana has decided that the Dearness Allowance payable to Haryana Government employees on un-revised scale of pay shall be enhanced from the existing rate of 166% to 183% of the pay w.e.f 01.07.2013.

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.

Revision of minimum rates of wages and variable dearness allowance.

GOVERNMENT OF INDIA
MINISTRY OF RAILWAYS
(RAILWAY BOARD)

No. 2011/E (LL)AT/MW/1

New Delhi dated: 24.10.2013

The General Managers, All Indian Railways, PUs and pSUs,
Metro Railway, Kolkata, CORE, Allahabad
The General Managers,(Construction), All lndian Railways
The Director General, RDSO, Lucknow
The DG/Railway Staff College, Vadodara
The Directors, IRICEN, IRIEEN, IRISET, IRIMEE, IRITM
The CAO, COFMOW, Tilak Bridge, New Delhi
The CAO, Rail Coach Factory / Raebareli, Kishan Ganj, Del
The CAO, Rail Wheel Plant, Bela

Sub: Revision of minimum rates of wages and variable dearness allowance.

   A copy each of orders No. (i) No. 1/11/(3)/2013-LS.II, (ii) No.1/11(4)/2013-LS-II, (iii) No.1/11/(5)/2013-LS.II, (iv) No.1/11/(6)2013-LS,II and (v) No.1/11/(7)2013-LS.II dated 19.09.2013 revising the rates of variable dearness allowance for contract workers engaged in (i) Construction or maintenance of roads or in Building operations etc., (ii) stones mines for Stone breaking & Stone Crushing, (iii) loading and unloading operations in railway goods sheds, parcel offices of Railways, (iv) Employment of sweeping and cleaning excluding activities prohibited under the Employment of Manual Scavengers and Construction of Dry Latrines (Prohibition) Act, 1993 and, (v) employment of watch and ward respectively is sent herewith, for information and strict compliance. The rates are applicable w.e.f. 01.10.2013.

PUNJAB Govt. Hikes 8% DA FOR EMPLOYEES and PENSIONERS.

   With Diwali round the corner, Punjab Government on Friday gifted bonanza for its employees announcing the much-awaited eight per cent hike in Dearness Allowance (DA) payable to State Government employees and pensioners which was due from January 2013.

   The increased DA would be affected from July 1, 2013, which would further enhance the DA to 80% from present 72% of the basic pay, said an official spokesman. State Government employees have been pressing the Government for disbursing DA. Spokesman said that the enhanced DA would be paid along with the pay from Oct month and the remaining enhanced DA from July 2013 to September 2013 would be paid in cash to employees and pensioners. The spokesman clarified that the decision about the pending payment of enhanced DA from January to June 2013 would be taken later.

UTTARAKHAND Govt. Announces 10% DA Hike for State Government Employees.

   Following the demand of State Government employees, the State Government has given 10 per cent increment in dearness allowance for State employees. Besides this, an ad hoc bonus for 30 days has been approved for State workers and casual/daily wage workers of aided educational and technical institutions. Besides it, chief minister has announced Rs1,000 bonus to the Aaganwari and Asha workers on Thursday.

    Workers of regional corporations, aided educational and technical institutions and urban corporations whose remuneration have been revised/unrevised since 1.1.2006, will be eligible for the increase in dearness allowance, to be calculated from July 01. Uttarakhand Finance Department’s Government Order No. 557/xxvii(7)02/2013 dated 24 October, 2013 increases the dearness allowance of state employees working on revised remuneration, including workers of regional corporations, aided educational and technical institutions and urban corporations, effective from 01 July, 2013  from 80 per cent to 90 per cent. The same order also increases the dearness allowance of state employees working on unrevised remuneration by 17 per cent, from 166 per cent of the basic salary to 183 per cent of the basic salary.

Sanction of Dearness Allowance @ 10% to Odisha Government Employees with effect from 01.07.2013.

GOVERNMENT OF ODISHA
FINANCE DEPARTMENT

OFFICE MEMORANDUM

No. 31434/ CS-I V(ALW)-0001/ 2012., Bhubaneswar, date the 08th Oct 2o13

Sub:- Sanction of Dearness Allowance @ 10% to State Government Employees with effect from 01.07.2013.

   Ministry of Finance, Government of India, Department of Expenditure in their Office Memorandum No-1-8/2013-E-II(B).,dtd.25.09.2013 have enhanced the Dearness Allowance payable to the Central Government employees from existing 80% to 90% w.e.f. 01.07.2013.

   2. Now, considering the overall financial resources and fiscal targets stipulated under Odisha Fiscal Responsibility and Budget Management Act, 2005, the State Government have been pleased to release additional dose of DA @ l0% enhancing the same from the existing rate of 80% to 90% on the Basic Pay and Grade Pay taken together w.e.f. 01.07.2013 in case of the State Government employees, who are covered under the ORSP Rules, 2008. This additional dose of DA will be paid in cash and can be drawn in the Pay Bill of October, 2013 payable in November, 2013 and onwards. Arrear from the month of July, 2013 to September, 2013 on account of the enhanced DA will be drawn and disbursed latest by 31.03.2014.

Tamil Nadu Govt. ALLOWANCES – Dearness Allowance – Enhanced Rate of Dearness Allowance from 1st July 2013 – Orders – Issued.

GOVERNMENT OF TAMIL NADU
2013
 
FINANCE (ALLOWANCES) DEPARTMENT
G.O.No.401, Dated 10th October 2013
(Vijaya, Purattasi-24, Thiruvalluvar Aandu 2044)

 
ALLOWANCES – Dearness Allowance – Enhanced Rate of Dearness Allowance from 1st July 2013 – Orders – Issued.
 
READ - the following papers:
 
1. G.O.Ms.No.145, Finance (Allowances) Department, dated 2nd May 2013.

2. From the Government of India, Ministry of Finance, Department of Expenditure, New Delhi, Office Memorandum No. 1-8 /2013-E-II (B), dated 25th September 2013.

ORDER:

   In the Government Order first read above, orders were issued sanctioning revised rate of Dearness Allowance to State Government employees as detailed below:-

Expected DA From Jan 2014 - Possibility Of Increase Of DA By 11%

   As per the present state DA has reached 90 %. At this juncture, Central Government Employees are eagerly waiting to know the percentage of increase in the month of Jan 2014. The DA increase in the month of Jan 2014 does have certain importance in it. Because when DA reaches 100%, there is a possibility of increase of certain allowances also simultaneously.

   As per the recent publication of AICPIN value, DA has reached the height of 93.93 % at present. During the coming four months, if the AICPIN value increases by 1point, there is a possibility of DA reaching the 100 % mark. Likewise, if the average becomes 2point, there is a chance of reaching 101 % as DA. During the ensuing four months, based on the value calculation of AICPIN, it would be possible to calculate DA accurately. Still, there is maximum possibility of increase of DA by 11 %     

   EXPECTED DA FROM JAN 2014

   IF AICPIN RISE ONE POINTS IN THE BALANCE MONTHS OF AICPIN…

Chhattisgarh Govt. announced 10 % Dearness Allowance

   Bringing a major respite from rising cost of living, Chief Minister Raman Singh on Saturday announced a hike of 10 per cent in the Dearness Allowance (DA) for State Government employees.

   As per the Chief Minister's directives, the Finance Department has issued the order from the Mantralaya for increase of 10 per cent in DA of State Government employees, which will be applicable from July 23, 2013.

   The DA of State Government employees, which was 80 per cent till now, has been increased to 90 per cent. Singh made the aforementioned announcement while addressing a massive gathering held at Block and Tehsil Headquarters Deobhog, situated around 225 kms away from Raipur on Saturday evening.

Madhya Pradesh on Thursday announced a hike of 10 per cent in dearness allowance (DA).

   The Madhya Pradesh Cabinet on Thursday approved a hike in the Dearness Allowance for all employees of the State government and local bodies.

   The DA has been hiked from 80 to 90 per cent of the basic salary. The double digit hike comes less than a week after the Centre announced a 10 per cent hike for its employees. Timed before the model code of conduct for elections comes into force, the DA would be paid retrospectively from July 1.

   The BJP government of poll-bound Madhya Pradesh on Thursday announced a hike of 10 per cent in dearness allowance (DA).

   The decision comes as a bonanza for a large number of employees and pensioners ahead of the festive season.

Shortly DA would cross 100 percent. Once again, all allowances would enhance by 25%.

   As per the information received, unlike previous time, decision on DA would be taken by Cabinet Committee Meeting without delay. Subsequent to release of AICPIN for the month of June by Labor Bureau, Finance Ministry would send for the approval of the Cabinet for final decision on DA. After obtaining the approval, Finance Ministry would release the specific orders procedurally for disbursement of money.

   Additional DA will be paid along with the salary of this month

   The arrears for the month of July and August would also be paid. With the increase of DA by 10%, the total amount of DA would enhance and stay at 90%.

   By next year, it would cross 100%. During that period, as pointed out in the 6th Central Pay Commission, certain allowances would enhance by 25%. But, that is not the expectations of the Central Government Employees. Their requirements are merger of DA with Basic Pay.

Grant of Dearness Allowance to State Government employees.

GOVERNMENT OF RAJASTHAN
FINANCE DEPARTMENT
(RULES DIVISION)

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

                                              Jaipur, dated :21-09-2013

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 19-04-2013 shall be revised from 80% to 90% with effect from 01-07-2013.

   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.

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.