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 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

Decision on hiking dearness allowance deferred.

   Decision on hiking dearness allowance deferred

   The government on Tuesday deferred a decision on hiking dearness allowance (DA) of central government employees to 80 per cent, from 72 per cent at present.

   An increase in DA would have benefitted about 50 lakh employees and 30 lakh pensioners.

   "The proposal on DA has been deferred as the Finance Minister was not present," Information and Broadcasting Minister Manish Tewari told reporters after the Cabinet meeting chaired by Prime Minister Manmohan Singh here.

   Finance Minister P Chidambaram is on an official visit to Japan.

   A hike in DA has been proposed with effect from January 1, 2013, according to sources.

   The government had hiked DA to 72 per cent in September last year. The increase was with effect from July 1, 2012.

   The Confederation of Central Government Employees has demanded merger of up to 50 per cent DA with the basic pay and setting up the seventh pay commission at the earliest.

   As per the practice, the DA is merged with basic pay when it breaches the 50 per cent cap. This helps employees get higher allowances as those are paid as proportion to the basic pay.

Source:economictimes

Expected DA from Jul-2013. AICPIN for the month of January-2013. Consumer Price Index for Industrial Workers (CPI-IW) – January, 2013.

No. 5/1/2013-CPI
GOVERNMENT OF INDIA
MINISTRY OF LABOUR & EMPLOYMENT
LABOUR  BUREAU

CLEREMONT, SHIMLA-171004
DATED: the 28th February, 2013

Press Release

Consumer Price Index for Industrial Workers (CPI-IW) – January, 2013

   The All-India CPI-IW for January, 2013 rose by 2 points and pegged at 221 (two hundred and twenty one). On 1-month percentage change, it increased by 0.91 per cent between December and January compared with 0.51 per cent between the same two months a year ago.

   The largest upward contribution to the change in current index came from Housing Group which increased by 3.53 per cent, contributing 1.28 percentage points to the total change. This was followed by Miscellaneous and Food groups with 0.74 and 0.26 per cent increase respectively contributing 0.32 and 0.28 percentage points to the change. At item level, largest upward pressure came from Rice, Wheat & Wheat Atta, Groundnut Oil, Eggs (Hen), Fish Fresh, Goat Meat, Poultry (Chicken), Onion, Tea (Readymade), Firewood, Auto Rickshaw Charges, Bus Fare, Rail Fare, etc. However, this was compensated by Arhar Dal, Potato, Tomato, Other Green Vegetables, Sugar, Electricity Charges and Flower/Flower Garlands by putting downward pressure on the index.

   The year-on-year inflation measured by monthly CPI-IW stood at 11.62 per cent for January, 2013 as compated to 11.17 per cent for the previous month and 5.32 per cent during the corresponding month of the previous year. Similarly, the Food inflation stood at 14.08 per cent against 13.53 per cent of the previous month and 0.49 per cent during the corresponding month of the previous year.

   At centre level, Durgapur recorded the largest increase of 18 points followed by Jharia (10 points), Godavarikhani (9 points), Goa and Surat (8 points each), and Chandigarh (6 points). Among others, 5 point rise was registered in 3 centres, 4 points in 6 centre, 3 points in 12 centres, 2 points in 13 centres and 1 point in 11 centres. On the contrary, Labac-Silchar and Mariani-Jorhat centres reported a decline of 2 points each. The indices of Jalandhar, Rourkela, Sholapur and Kolkata were also declined by 1 point each. Rest of the 21 centres’ indices remained stationary.

   The indices of 39 centres are above All-India Index and other 38 centres’ indices are below national average. The index of Mysore centre was at par with all-India index.

   The next index of CPI-IW for the month of February, 2013 will be released on Thursday, 28 March, 2013. The same will also be available on the office website www.labourbureau.nic.in.

sd/-
(S.S. NEGI)
DIRECTOR

Source:http://www.labourbureau.nic.in/Press_Note_CPIW_E_Jan2013.pdf

Expected DA from January 2013 - AICPIN for the month of December 2012.

Consumer Price Index Numbers for Industrial Workers (CPI-IW) December 2012

   The All-India CPI-IW for December, 2012 rose by 1 point and pegged at 219 (two hundred and nineteen). On 1-month percentage change, it increased by 0.46 per cent between .November and December compared with (–)1.01 per cent between the same two months a year ago.

   The largest upward contribution to the change in current index came from Miscellaneous Group which increased by 1.08 per cent, contributing 0.49 percentage points to the total change. This was followed by Clothing, Bedding & Footwear and Fuel & Light groups with 1.17 and 0.92 percent respectively contributing 0.13 and 0.10 percentage points to the change. At item level , largest upward pressure came from Rice, Wheat Atta, Groundnut oil, Fish Fresh, Goat Meat, Poultry (Chicken), Onion, Tea (Leaf), Tea (readymade),Electricity charges, Firewood, Sweater, E.S.I. contribution, Medicine (Allopathic), Private Tution Fees, us fare, Flower/ Flower Garlands, Tailoring Charges, etc.

   The largest downward contribution to the change in current index came from Vegetables & Fruits with a decline of (-) 8.33 per cent contributing (-) 1.21 percentage points to the total change.

   The year-on-year inflation measured by monthly CPI-IW stood at 11.17 per cent for December, 2012 as compared to 9.55 per cent for the previous month and 6.49 per cent during the corresponding month of the previous year. Similarly, the Food inflation stood at 13.53 per cent against 10.85 per cent of the previous month and 1.97 per cent during the corresponding month of the previous year.

   At centre level, Hubli Dharwar recorded the largest increase of 10 points followed by Quilon (8 points) and Mundalakkayam and Ernaculam (7 points each) and Mysore (5 points). Among others, 4 per cent rise was registered in 2 centres, 3 points in one centre, 2 points in 11 centres and one point in 12 centres. Doom Dooma Tinsukiya centre reported a decline of 5 points followed by Jalpaiguri and Faridabad 4 points each. Among others 6 centres registered a fall of 3 points, 11 centres registered a fall of 2 points and 13 centres registered a fall of 1 point. Rest of the 14 centres indices remained stationary.

   The indices of 37 centres are above All-India Index and other 37 centres’ indices are below national average. The indices of Jabalpur, Bengaluru, Chandigarh and Haldiya remained at par with all-India index.

   The next index of CPI-IW for the month of January, 2013 will be released on Thursday, February 28, 2013 and will be uploaded on the office website www.labourbureau.nic.in on the same day.

Source: PIB

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