Dearness Allowance to Central Government employees - Revised Rates effective from 1.1.2014 Finance Ministry Issued Orders

No.1/1/2014-F-II (B)

Government of India

Ministry of Finance

Department of Expenditure

North Block, New Delhi

Dated: 27th March. 2014

OFFICE MEMORANDUM

Subject: Payment of Dearness Allowance to Central Government employees - Revised Rates effective from 1.1.2014.

The undersigned is directed to refer to this Ministry’s Office Memorandum No.I-8/2013-E-II (B) dated 25th September, 2013 on the subject mentioned above and to say that the President is pleased to decide that the Dearness Allowance payable to Central Government employees shall be enhanced from the existing rate of 90% to 100% with effect from January, 2014.

2. The provisions contained in paras 3, 4 and 5 of this Ministry’s O.M. No.1(3)/2008-E-11(B) dated 29th August, 2008 shall continue to be applicable while regulating Dearness Allowance under these orders.

3. The additional installment of Dearness Allowance payable under these orders shall be paid in cash to all Central Government employees.

4. The payment of arrears of Dearness Allowance shall not he made before the date of disbursement of salary of March. 2014.

5. These orders shall also apply to the civilian employees paid from the Defence Services Estimates and the expenditure will be chargeable to the relevant head of the Defence Services Estimates. In regard to Armed Forces personnel and Railway employees, separate orders will he issued by the Ministry of Defence and Ministry of Railways, respectively.

6. In so far as the employees working in the Indian Audit and Accounts Department are concerned, these orders are issued with the concurrence of the Comptroller and Auditor General of India.

sd/-

(A.Bhattacharya)

Under Secretary to the Government of India

View Official Order: Click Here

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Finance Ministry Order Issued: Dearness Allowance(DA) to Central Government Employees- Revised Rate effective from 01.07.2013

Finance Ministry Order Issued: Dearness Allowance(DA) to Central Government Employees- Revised Rate effective from 01.07.2013

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10% DA hike for Central government employees w.e.f 01 July 2013

10% DA hike for Central government employees w.e.f 01 July 2013

Union Cabinet on 20 September 2013 (Friday) approved a double-digit increase of 10% in dearness allowance from existing 80% to 90 per cent, benefiting 50 lakh Central government employees and 30 lakh pensioners, with effect from July 1, 2013.

Significantly, the double-digit increase in DA has come after a gap of about three years. Since the government uses CPI-IW (Consumer Price Inflation – Industrial Workers) data for the previous 12 months to arrive at a figure for computation of any increase in DA instalment, the percentage hike is based on the retail inflation data for July 2012-June 2013. The previous DA hike of 10 per cent was in September 2010 when the government announced an additional instalment given with effect from July 1 that year.

In April this year, the government announced DA increase from 72 to 80 per cent with effect from January 1, 2013.

Official Release on PIB read as follows:

Release of additional installment of dearness allowance to Central Government employees and dearness relief to Pensioners, due from 1.7.2013

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.

Hence, the Central Government employees as well as the pensioners are entitled for DA/DR at the rate of 90 per cent of the basic with effect from 01.07.2013. 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 dearness allowance and dearness relief would be of the order of Rs. 10879.60 crore per annum and Rs. 7253.10 crore in the financial year 2013-14 ( i.e. for a period of 8 month from July, 2013 to February 2014).

Official order from finmin is expected soon and the same will be posted in this blog immediately on release by finmin. Keep Visiting!!!

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Union Cabinet hikes DA for Central government staff by 8% w.e.f. 01 January 2013

Union Cabinet hikes DA for Central government staff by 8% w.e.f. 01 January 2013

 In a much-awaited relief to the Central government employees, the Union Cabinet on Thursday cleared a proposal to increase dearness allowance from 72 to 80 per cent.

The increase, effective from January 1, 2013, will benefit about 50 lakh employees and 30 lakh pensioners, who will also be entitled to arrears.

According to an official statement here, the combined impact on the exchequer on account of an additional installment of DA to Central government employees and Dearness Relief (DR) to pensioners with effect from January 1 this year would be Rs.8,629.20 crore per annum and Rs. 10,067.36 crore in the financial year 2013-14 (that is for a period of 14 months from January 2013 to February 2014).

The last increase in DA to 72 per cent was announced in September last year and it came into effect from July 1, 2012.

The Cabinet deferred a decision on the DA issue earlier this month as Finance Minister P. Chidambaram was then on an official visit to Japan. “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 on April 2.

Click Here to view the official order from Finance Ministry

Source: The Hindu

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