Method of Calculation of Dearness Allowance and Expected DA Increase from 2013 Calculation of DA(Dearness Allowance) Rates

Method of Calculation of Dearness Allowance and Expected DA Increase from 2013
Calculation of DA(Dearness Allowance) Rates

•     DA rates for Government employees are to be announced half yearly which will be applicable from first January and First July.
•     On implementation of Sixth Pay Commission recommendations with effect from 01.01.2006 a new method of calculation of DA (dearness allowance) rates is adopted by Central (including Railways)and State Governments.
•     DA rates are fixed on the basis of All India Consumer Price Index (AICPI) for industrial workers with Base year as 2001.
  
  
  

Method of Calculation

DA is calculated using the following formulae:

Dearness Allowance = (Avg of AICPI for the past 12 months - 115.76)*100/115.76
(Fractions are ignored)

The figure 115.76 signifies the average of price index from Jan 2005 to Dec 2005.
Example: To calculate Jan 2013 DA rate Price index average from Jan 2012 to Dec 2012 is taken.
AICPI data for Jan 2012 to Dec 2012 as per Labour Bureau, Department Statistics, Government of India website is as follows:

Jan-12	198
Feb-12	199
Mar-12	201
Apr-12	205
May-12	206
Jun-12	208
Jul-12	212
Aug-12	214
Sep-12	215
Oct-12	217
Nov-12	218
Dec-12	219
Total	2512
Average	209.33

Dearness allowance (01.01.2013)=( 209.33-115.76)*100/115.76=80.83

• DA  (after ignoring fraction)=80 %
• So Rate of DA expected from 01.01.2013 is 80 %
• The rate of increase will be 8% (72% to 80%).

 Source: Indian railway employee

Dearness Allowance (DA) is granted to Railway employees

Dearness Allowance (DA) is granted to Railway employees

•     DA is granted to Railway employees to offset inflation and rising cost of living and inflation.
•     Basis for DA calculation is All India consumer price index.
•     DA revision is done to neutralise inflation 100%.
•     Government will sanction DA on the first of January and on the first of July every year if it is due as per the calculation.

Dearness Pay (For those who retain Vth pay Commission scale)

•     With effect from 1.1.2004 50% of DA was convertede to DP and DA was fixed as 11%.
•     From that DA and other allowances were calculated based on Pay + DP resulting in financial benefit to employee and a temporary relief to employees who were waiting for next Pay Commission.
•     Likewise for pensioners also 50% Dearness Relief was seperated as Dearness Pension from 1.1.2004 and DA was calculated on Pension + DP.
•     This is still applicable for those who retain 5 th CPC scales.

Related News: Method of Calculation of Dearness Allowance and Expected DA Increase from 2013

Retention of Govt. Accommodation on Retirement or Terminal Leave: Amendment in Rules

Retention of Govt. Accommodation on Retirement or Terminal Leave: Amendment in Rules

Directorate of Estates vide his Notification dated 10th April, 2013 amended the following rules regarding retention of govt. accommodation on retirement or terminal leave:-

Allotment of Government Residences (General Pool in Delhi), Rules, 1963

(i)  Supplementary Rule 317-B-11: Removal of facility of retention of quarter for another 2 months on double the normal fee.

ii)  Supplementary Rule 371-B-22: Reducing the facility of retention of for a further two month on four times licence fee & further two months on six time licence fee to period of one month on payment of six times of the normal licence fee for special reasons.

[TO BE PUBLISHED IN THE GAZETTE OF INDIA] EXTRAORDINARY PART II SECTION-3, SUB-SECTION (i)]
GOVERNMENT OF INDIA
MINISTRY OF URBAN DEVELOPMENT
DIRECTORATE OF ESTATES

Nirman Bhawan, New Delhi
10th April 2013

NOTIFICATION

G.S.R. ….    In pursuance of provision of rule 45 of the Fundamental Rules, the President hereby makes the following rules further to amend the Allotment of Government Residences (General Pool in Delhi) Rules 1963, namely :-



1.    Short Title & Commencement:

(1)    These rules may be called the Allotment of Government Residences (General Pool in Delhi) Amendment Rules 2013.
(2)    They shall come into force from the date of their publication in the official Gazette.

2.    In the Allotment of Government Residences (General Pool in Delhi), Rules, 1963

 (a) In Supplementary Rule 317-B-11, in the table sub—rule (2), against the item (ii) relating to retirement or terminal leave, for the figure and words “2 months on normal licence fee and another 2 months on double the normal fee” occurring under the column relating to permissible period for retention of the residence, the figure and words “2 months on normal licence fee” shall be substituted.

(b) In Supplementary Rule 371-B-22, the existing provision in para 3 i.e.

“Provided further that in the event of retirement or terminal leave, the allottee shall be eligible to retain the Government accommodation for a further period of two months on payment of four times of the normal licence fee and subsequent two months on payment of six times of the normal licence fee for special reasons involving medical/educational grounds, subject to appropriate certification by the authorities concerned”

shall be substituted by

 “Provided further that in the event of retirement or terminal leave, the allottee shall be eligible to retain the government accommodation for a further period of one month on payment of six times of the normal licence fee for special reasons involving medical/educational grounds, without certificate”.

[F.No. 12035/28/96-Pol.II(Vol.II)]

(S.K. Jain)
Deputy Director of Estates(Policy)

Source:http://estates.nic.in

Gazette Notification Regarding Tenure Officers Pool for the officers of the office of Resident Commissioners at Delhi

[TO BE PUBLISHED IN THE GAZETTE OF INDIA] EXTRAORDINARY
PART II SECTION-3, SUB-SECTION (i)

GOVERNMENT OF INDIA
MINISTRY OF URBAN DEVELOPMENT
DIRECTORATE OF ESTATES

Nirman Bhawan, New Delhi
10th April 2013

NOTIFICATION

G.S.R. ….    In pursuance of provision of rule 45 of the Fundamental Rules, the President hereby makes the following rules further to amend the Allotment of Government Residences (General Pool in Delhi) Rules 1963, namely :-

1.    Short Title & Commencement:

    (1)    These rules may be called the Allotment of Government Residences (General Pool in Delhi) Amendment Rules 2013.
    (2)    They shall come into force from the date of their publication in the official Gazette.


2.    In the Allotment of Government Residences (General Pool in Delhi), Rules, 1963, at the end of sub-rule (ii) of Rule 1 under Supplementary Rule 317-B-8 (which provides for maintenance of separate pools for certain categories of officers), the following phrase be inserted “or in the office of the Resident Commissioners of various State/UT Government at Delhi”. The amended rule will read as under:

    “Tenure Officers Pool for the officers of the Indian Administrative Service, the Indian Forest Service and the Indian Police Service on duty with the Central Government or the Delhi Administration on tenure basis or in the office of the Resident Commissioners of various State/UT Governments at Delhi”

[F.No.12016/1/2004-Pol.II]

(S.K. Jain)
Deputy Director of Estates (Policy)

Gazette Notification Regarding retention of quarter on retirement or terminal leave

Gazette Notification Regarding retention of quarter on retirement or terminal leave:

[TO BE PUBLISHED IN THE GAZETTE OF INDIA] EXTRAORDINARY

PART II SECTION-3, SUB-SECTION (i)

GOVERNMENT OF INDIA
MINISTRY OF URBAN DEVELOPMENT
DIRECTORATE OF ESTATES

Nirman Bhawan, New Delhi
10th April 2013

NOTIFICATION

G.S.R. ….    In pursuance of provision of rule 45 of the Fundamental Rules, the President hereby makes the following rules further to amend the Allotment of Government Residences (General Pool in Delhi) Rules 1963, namely :-

1.    Short Title & Commencement:

    (1)    These rules may be called the Allotment of Government Residences (General Pool in Delhi) Amendment Rules 2013.
    (2)    They shall come into force from the date of their publication in the official Gazette.

2.    In the Allotment of Government Residences (General Pool in Delhi), Rules, 1963

    (a)    In Supplementary Rule 317-B-11, in the table sub—rule (2), against the item (ii) relating to retirement or terminal leave, for the figure and words “2 months on normal licence fee and another 2 months on double the normal fee” occurring under the column relating to permissible period for retention of the residence, the figure and words “2 months on normal licence fee” shall be substituted.

    (b)    In Supplementary Rule 371-B-22, the existing provision in para 3 i.e.

    “ Provided further that in the event of retirement or terminal leave, the allottee shall be eligible to retain the Government accommodation for a further period of two months on payment of four times of the normal licence fee and subsequent two months on payment of six times of the normal licence fee for special reasons involving medical/educational grounds, subject to appropriate certification by the authorities concerned”

    shall be substituted by

    “Provided further that in the event of retirement or terminal leave, the allottee shall be eligible to retain the government accommodation for a further period of one month on payment of six times of the normal licence fee for special reasons involving medical/educational grounds, without certificate”.

[F.No. 12035/28/96-Pol.II(Vol.II)]

(S.K. Jain)
Deputy Director of Estates(Policy)

Rajasthan Government Dearness Allowance Order January 2013

Rajasthan Government Dearness Allowance Order January 2013

GOVERNMENT OF RAJASTHAN
FINANCE DEPARTMENT
(RULES DIVISION)

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

Jaipur, dated : 19 APR 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 27.09.2012 shall be revised from 72% to 80% with effect from 01.01.2013.

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.

The payment on account of Dearness Allowance involving fraction of 50 paisa and above may be rounded off to the next higher rupee and the fraction of less than 50 paisa may be ignored.

The amount of increase in Dearness Allowance for the period from 01.01.2013 to 31.03.2013 shall be credited to the General Provident Fund Account of the respective employees and cash payment shall be admissible from 01.04.2013 i.e. salary for the month of April, 2013 payable on 01.05.2013.

The arrear of DA from 01.01.2013 to 31.03.2013 to the employees recruited to the Civil Services on or after 01.01.2004 and who are governed by Contributory Pension Scheme, shall be paid in cash.

Source: http://finance.rajasthan.gov.in/

DOWNLOAD THE ORIGINAL ORDERS HERE

Grant of Dearness Allowance(72% to 80%) to State Government Employees

Grant of Dearness Relief(72% to 80%) to State Government Pensioners

Grant of Dearness Allowance(72% to 80%) to Work-charged Employees 

MoD Clarification on Children Education Allowance/Hostel Subsidy for Armed Forces

MoD Clarification on Children Education Allowance/Hostel Subsidy for Armed Forces

MoD has issued a clarification on Children Education Allowance/Hostel Subsidy that DoPT OM dated 31st May, 2012 will be mutatis mutandis applicable to Armed Forces personnel.  Text of MoD letter is reproduces below:

No.PC-1(66)/2008/D(Pay/Services)
Government of India
Ministry of Defence
New Delhi, Dated 5th April, 2013

Subject : Children Education Allowance/Hostel Subsidy - Clarification.

Sir,
I am directed to refer to this Ministry's letter No. 1(66)/2008/D(Pay/Services) dated 25th February, 2009 and subsequent clarifications issued from time to time on the subject cited above and to say that the provisions of Ministry of Personnel, Public Grievances and Pensions (Deptt. of Personnel and Training) O.M.No.12011/07/2011-Estt.(AL) dated 31 May, 2012 (copy enclosed) will be mutatis mutandis applicable to Armed Forces personnel.


2. This issues with the concurrence of Finance Division of this Ministry vide their Dy.No.135/AG/PD dated 4.4.2013.

Yours faithfully,
sd/-
(P.S.Walia)
Under Secretary

DOPT has issued following clarifications vide his No. No.12011/07/2011-Estt.(AL) dated 31-05-2012 regarding reimbursement of Children Education Allowance:

  

1. Hostel subsidy reimbursable if residential school/institution located beyond a distance of 50 km.  Grant of hostel subsidy is not related to transfer liability of the Govt employee.

    2. CEA/Hostel subsidy reimbursable for the initial two years of a diploma/ certificate course from Polytechnic/ ITI/ Engineering College if the child pursues the course after passing 10th standard.

Government of India, Department of Personnel and Training, No.12011/07/2011-Estt.(AL) New Delhi, May 31, 2012

Source: www.cgda.nic.in
[http://cgda.nic.in/adm/CEA_HS_2013.pdf]