25% Hike in Allowances – Dopt Orders on increase in certain allowances by further 25% Dearness Allowances w.e.f. 1.1.2014

Dopt Orders on clarification on increase in certain allowances by further 25% as a result of enhancement of Dearness Allowances w.e.f. 1.1.2014

No.A-27012/1/2014-Estt. (Allowance)

Government of India

Ministry of Personnel, Public Grievances and Pension

Department of Personnel & Training

Block-IV, Old JNU Campus

New Delhi, 28th April, 2014.

OFFICE MEMORANDUM

 

Subject: Clarification on increase in certain allowances by further 25% as a result of enhancement of Dearness Allowances w.e.f. 1.1.2014

The undersigned is directed to refer to para 1(j) of this Department’s OM. No.12011/03/2008-Estt. (Allowance) dated 2.9.2008. This provides that the limits of Children Education Allowance would be automatically raised by 25% every time the Dearness Allowance on the revised pay structure goes up by 50%. References are being received from various quarters with regard to the amount of Children Education Allowance admissible consequent upon enhancement of Dearness Allowance payable to Central Government employees @ 100% w.e.f. 1 January, 2014 announced vide Ministry of Finance, Department of Expenditure O.M. No.1/l/2014-E-1I (B) dated 27th March, 2014.

 

2. In accordance with the above, the following shall be the revised limits:

a) The annual ceiling limit for reimbursement of Children Education Allowance shall be Rs.18,000/- per child. Accordingly, the quarterly claim could be more than Rs.4500/- in one quarter. The Hostel Subsidy shall be Rs.4500/- per month per child;

b) The rates of Special Allowance for Child Care to women with disabilities stands revised to Rs. 1500/- per month; and

c) The annual ceiling for reimbursement of Children Education Allowance for disabled children of Government employees shall be treated as revised to Rs.36,000/- per annum per child and the rates of Hostel Subsidy for disabled children of Government employees shall be treated as revised to Rs.9000/- per child per month.

 

3. These revisions are applicable with effect from 1st January, 2014.

 

4. These revisions shall be subject to other terms and conditions mentioned in this Department’s O.M. No.12011/03/2008-Estt (Allowance) dated 2.9.2008, O.M. No.12011/04/2008 dated 11.9.2008 and 12011/07(i)12011-Estt.(AL) dated 21.2.2012.

sd/

(Mukul Ratra)

Director

Source:www.persmin.gov.in
[http://ccis.nic.in/WriteReadData/CircularPortal/D2/D02est/A-27012_1_2014-Estt.Allowance-28042014.pdf]

List of Allowances and Advances to be increased by 25% from 1.1.2011

List of Allowances and Advances to be increased by 25% from 1.1.2011

100% D.A from January 2014 – Some Allowances and Advances Rise by 25%

The Fifth Central Pay Commission had recommended uniform neutralization of DA at 100% to employees at all levels and increase in DA calculation too, according to the 12 monthly average of AICPIN for Industrial Workers (1982=100) as on 1st January 1996, of 306.33.

The Linking Factor of 303.33 has now changed to 115.76. This was calculated as 4.63 in the 4th CPC.
It was due to this change that the Dearness Allowance has increased in recent years. The 6th Pay Commission had promptly calculated it and said that the true impact of price rise and inflation would only then be known.

It was also mentioned in the recommendations made by the 6th CPC that each time the Dearness Allowance touched 50%, certain Allowances and Advances should also be raised by 25%.
It is of common knowledge that according to these recommendations, when D.A touched 50% on 01.01.2011, DOPT issued orders to increase it by 25%.

Since the DA is calculated on the basis of price rise and inflation, this 25% raise was given in order to make it uniformly applicable to all the other Allowances and Advances. The Allowances and Advances mentioned in this are the Children’s Education Allowance and Hostel Subsidy and Festival Advance.

As of now, the Central Government employee is entitled to claim 15,000 per annum per child under the Children’s Education Allowance and Hostel Subsidy. An increase of 25% would mean that the amount would rise to Rs. 18,750 per year. Similarly, there are chances that the Festival Advance would increase to Rs. 4700. These could be confirmed only after the DOPT makes its official announcements.

The list mentioned below is explanatory and given in detail, along with explanations.

S.No.	Name of the Allowances & Advances	Existing	Revised
1.	Children Education Assistance & Reimbursement of Tuition Fee	Rs.12,000 (Per Year - Per Child)	Rs.15,000 (Per Year - Per Child)
2.	Advances for purchase of Bicycle Advance, Warm clothing Advance, Festival Advance, Natural Calamity Advance	Rs.3,000	Rs.3,750
3.	Special Compensatory Hill Area Allowance	Rs.600 / Rs.480	Rs.750 / Rs.600
4.	Special Compensatory Scheduled / Tribal Area Allowance	Rs.400 / Rs.240	Rs.500 / Rs.300
5.	Project Allowance	Rs.1,500 / Rs.1,000	Rs.1,875 / Rs.1,250
6.	Speical Compensatory (Remote Locality) Allowance	Rs.2,600 / Rs.2,100/ Rs.1,500 / Rs.400	Rs.3,250 / Rs.2,625/ Rs.1,875 / Rs.500
7.	Cycle Maintenance Allowance	Rs.60 (Per month)	Rs.75 (Per month)
8.	Mileage for road journey all components of daily allowance on tour	Rs.500 / Rs.300 / Rs.200 / Rs.150 / Rs.100	Rs.625 / Rs.375 / Rs.250 / Rs.190 / Rs.125
9.	Rates of Fixed Conveyance Allowance under SR-25 (Motor Car)	Rs.1,120 / Rs.1,680 / Rs.2,070 / Rs.2,430 / Rs.3,000	Rs.1,400 / Rs.2,100 / Rs.2,590 / Rs.3,040 / Rs.3,750
10.	Rates of Fixed Conveyance Allowance under SR-25 (Other modes)	Rs.370 / Rs.480 / Rs.640 / Rs.750 / Rs.850	Rs.470 / Rs.600 / Rs.800 / Rs.940 / Rs.1,070
11.	Washing Allowance	Rs.60	Rs.75
12.	Split Duty Allowance	Rs.200	Rs.250
13.	Spl. Allowance for Child Care for Women with Disabilities and Education Allowance for disabled children	Rs.1,000 per month	Rs.1,250 per month
14.	Cash Handling Allowance	Rs.600 / Rs.500 / Rs.400 / Rs.300 / Rs.150	Rs.750 / Rs.625 / Rs.500 / Rs.375 / Rs.190
15.	Risk Allowance	DOPT 21012/1/2008-Estt.(Allowance)	12.3.2009
16.	Postgraduate Allowance	Rs.1,000 / Rs.600	Rs.1,250 / Rs.750
17.	Desk Allowance	Rs.600	Rs.750
18.	Bad Climate Allowance	Rs.400 / Rs.240	Rs.500 / Rs.300

Click to view the original orders from Dopt on increasing allowances by 25%...

Source: 90pasia.blogspot.in
[http://90paisa.blogspot.in/2014/04/100-da-from-january-2014-some.html]

Finance Ministry’s Orders on 10% DA Expected Shortly!

 Finance Ministry’s Orders on 10% DA Expected Shortly!

At the Cabinet Committee meeting that was held on 28/02/2014, approval was given for a 10% hike in the Dearness Allowance and Dearness Relief for Central Government employees and pensioners. Nearly a month has passed but the Finance Ministry has still not issued relevant orders to the departments concerned.

Despite the consent of the Cabinet Committee, the enhanced amount of DA will be given only after the Finance Minister issues the orders. The month of March ends on Monday and orders will have to be issued before then. Only then will the employees receive the DA amount for the month of March along with the month’s salary. Since all the banks will remain closed on the 2nd due to Annual closing of accounts, it will be available only on Tuesday, the 3rd.

Since all the DDOs under Central Government have been computerized and since DA calculation is a routine task, they would immediately take action as soon as they receive the fax. Moreover, in the press release announcing the Cabinet Committee’s approval, certain terms were clearly added that the “Cabinet 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”.

If the Finance Ministry fails to issue the orders before the end of this month, then 3 months’ arrears will be given in April.

Since “50% DA Merger” is not going to happen now, orders are expected regarding 25% increase in some specific allowances. One of these allowances is the “Children Education Allowance and Hostel Subsidy”. Last time, when DA touched 50%, the subsidy was increased from 12,000 to 15,000. Similarly, this time, it is expected to rise by 25% from 15,000 to 18,750.

Source: 90paisa.blogspot.in
[http://90paisa.blogspot.in/2014/03/finance-ministrys-orders-on-10-da.html]