Cabinet Approved 6% DA to Central Government Employees and Pensioners from 1.1.2015

6% hike in DA/DR for Central Government Employees from January, 2015 approved by Cabinet

Press Information Bureau
Government of India
Ministry of Finance

07-April-2015 20:03 IST

Release of additional installment of Dearness Allowance to Central Government employees and Dearness Relief to Pensioners, due from 1.1.2015

 

The Union Cabinet chaired by the Prime Minister, Shri Narendra Modi, today gave its approval to release an additional installment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners with effect from 01.01.2015 at the rate of six percent increase over the existing rate of 107 percent.

Hence, Central Government employees as well as pensioners are entitled for DA/DR at the rate of 113 percent of the basic pay with effect from 01.01.2015. 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 DA and DR would be of the order of Rs. 6762.24 crore per annum and Rs. 7889.34 crore in the Financial Year 2015-16 (i.e. for a period of 14 months from January 2015 to February 2016).

This will benefit 48 lakh government employees and 55 lakh pensioners.

Delay in Announcement of DA Hike from January 2015

Delay in Announcement of DA Hike from January 2015

Since the implementation of the recommendations of the 4th central pay commission in 1986, the announcement of approval and the order for granting Dearness Allowance to government employees were issued in March and September itself until it was violated once under UPA regime. In 2013, the approval for granting DA hike due from January 2013 was delayed inordinately. All the central government employees had waited patiently up to 31st March 2013. Even 1st and 2nd week of April 2013, there was no signs announcing the DA hike by the Central government. Then, the federations like AIRF and Confederation of central government employees and workers have raised objection over the inordinate delay of announcing DA. And they wrote letters to the Central Government to declare the Dearness Allowance immediately to avoid the confrontation.

While briefing the situation, the Confederation of central government employees and workers has mentioned in the editorial of their blog on 17th April 2013 that ‘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.’

The next day, ie on 18th April 2013 the union cabinet approved the DA hike which is due from January 2013.

This time the NDA Government started repeating the same story in its first year itself. As we mentioned earlier the DA hike from July 2014 has been announced un expectedly on 4th September 2014. So there was huge expectation this time that the present government would not make any delay in announcing the Payment dearness allowance from January 2015. But it seems that the government finds no time to take any decision over the issue of 50 Lakh Central government employees and Pensioners. Whether the central government expects the federations to plead for announcing DA hike? Or it really has no time to decide on this issue?

However, yesterday the Ministry of Finance issued a clarification dated 1st March 2015, in which it has been clarified that a fake order for payment of Dearness Allowance was being circulated in Government Departments/offices and all Ministries/Departments and Central Government offices were advised not to take cognisance of these fake instructions being circulated in Government offices.

To avoid confusion and frustration among central government employees, it is expected that the central government should announce its approval for Payment of Dearness Allowance from January 2015 immediately.

Source: www.gservants.com

10% DA Hike for Rajasthan & Odisha Government Employees

10% DA Hike for Rajasthan & Odisha Government Employees

10% DA Hike for Rajasthan Government Employees

Following the Central Government, the State Government of Rajasthan has declared ten percent of Dearness allowance to its employees.

Every time we saw the first state government is being in announcement of dearness allowance to its and employees and pensioners. The same pattern of central has been followed by the state government, the total percentage of dearness allowance to went up to 100% from 1.1.2014.

10% DA Hike for Odisha Government Employees

The State Government of Odisha decided to increase dearness allowance for its employees by 10%.

Last week Central Cabinet has declared ten percentage of dearness allowance for its employees and pensioners, following the pattern, the state government also sanctioned 10% of Dearness allowance from 1st Jan this year.

Source: http://7thpaycommissionnews.in/

Central Government to pay the Dearness allowance for state government employees

Central Government to pay the Dearness allowance for state government employees

Centre should pay DA of state govt employees as well: Mamata

Kolkata, Feb 22 (PTI) 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.

Source: PTI
[http://www.ptinews.com/news/4432201_Centre-should-pay-DA-of-state-govt-employees-as-well--Mamata-.html]

Expected DA : Cabinet Committee may approve in this week

Govt to hike DA by 10%; benefit 80 lakh employees and pensioners

New Delhi: Ahead of festival season, Central Government will this month announce a hike in dearness allowance to 90 percent from existing 80 percent, benefiting about 50 lakh central employees and 30 lakh pensioners.

According to official source, dearness allowance hike will be 10 percent and would be effective from July 1, this year.

The sources further said the exact amount of dearness allowance, as a proportion of basic pay, works out to over 90 percent after factoring in the revised all India Consumer Price Index for Industrial Workers (CPI-IW) for June.

According to revised data released on August 30, retail inflation for factory workers for June stood at 11.63 percent, higher than provisional estimate of 11.06 percent for the month released on July 31.

Sources said that since the revised estimate for the month of June is available, the Finance Ministry would soon prepare a proposal for the purpose for seeking Union Cabinet nod.

They further said the proposal will be moved this month.

There would be a double digit hike in DA after about three years. It was last in September, 2010, that the government had announced a hike of 10 percent to be given with effect from July 1, 2010.

DA was hiked to 80 percent from 72 percent in April, 2013, effective from January 1, this year.

As per the practice, the government uses CPI-IW data for past 12 month or a year to arrive at a number for the purpose of any DA hike. Thus, the retail inflation for industrial workers between July, 2012 to June 2013 will be used to take a final decision.

Source : PTI News