Orissa hikes 7 per cent DA for its employees

Doling out Dusshera bonanza for its employees, the Orissa government today announced an additional seven per cent dearness allowance, official sources said.The state government employees who were availing 51 per cent of DA would get 58 per cent DA from the month of July, 2011, they said.The employees would get the 58 per cent DA in their October salary.About five lakh government employees and over two lakh pension holders would get the benefit from the new announcement.Chief minister Naveen Patnaik announced this after an official meeting with finance department officials.Two days ago, Patnaik had announced doubling of pension for freedom fighters.

IBN

Payment of Dearness Allowance to Central Government employees – Revised Rates effective from 1.7.2011

No. 1(14)/2011-E-II (B)
Government of India
Ministry of Finance
Department of Expenditure

******

New Delhi, the 3rd October, 2011.

OFFICE MEMORANDUM

Subject: Payment of Dearness Allowance to Central Government employees – Revised Rates effective from 1.7.2011.

The undersigned is directed to refer to this Ministry’s Office Memorandum No. 1 (2)/2011-E-II(B) dated 24th March,2011 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 51% to 58% with effect from 1stJuly, 2011.

2 The provisions contained in paras 3, 4 and 5 of this Ministry’s O.M. No. 1 (3)/2008-E-II(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 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 be Issued by the Ministry of Defence and Ministry of Railways, respectively.

5 In so far as the persons serving in the Indian Audit and Accounts Department are concerned, these orders issue after consultation with the Comptroller and Auditor General of India.

(Anil Sharma)
Under Secretary to the Government of India

Click here to get Original DA GO Copy

Dearness Allowance to Tamilnadu Government Employees – GO Released

Manuscript Series

GOVERNMENT OF TAMIL NADU
2011

FINANCE (ALLOWANCES) DEPARTMENT
G.O.No.273, Dated 3rd October 2011
(Puratasi 16, Thiruvalluvar Aandu 2042)

ALLOWANCES – Dearness Allowance – Enhanced Rate of Dearness Allowance from 1st July 2011 – Orders – Issued.

READ – the following papers:

1. G.O.Ms.No.98, Finance (Allowances) Department, dated 28th March 2011.

2. From the Government of India, Ministry of Finance, Department of Expenditure, New Delhi, Office MemorandumNo.1 (14)/2011–E-II(B), dated 03.10.2011.

*****

ORDER:

In the Government Order first read above, orders were issued sanctioning revised rate of Dearness Allowance to State Government employees as detailed below:-

Date from which payable	Rate of Dearness Allowance (per month)
1st January 2011	51 per cent of Pay plus Grade Pay

2. The Government of India in its Office Memorandum second read above has now enhanced the Dearness Allowance to its employees from 51% to 58% with effect from 1st July, 2011.

3. Following the orders issued by the Government of India, the Government sanction the revised rate of Dearness Allowance to the State Government employees as indicated below:-

Date from which payable	Rate of Dearness Allowance (per month)
1st July, 2011	58 per cent of Pay plus Grade Pay

4. The Government also direct that the above increase in Dearness Allowance shall be paid in cash with effect from 01.07.2011.

5. The arrears of Dearness Allowance for the months of July, August and September 2011 shall be disbursed immediately. While working out the revised Dearness Allowance, fraction of a rupee shall be rounded off to next higher rupee if such fraction is 50 paise and above
and shall be ignored if it is less than 50 paise.

6. The Government also direct that the revised Dearness Allowance sanctioned above, shall be admissible to full time employees who are at present getting Dearness Allowance and paid from contingencies at fixed monthly rates. The revised rates of Dearness Allowance sanctioned in this order shall not be admissible to part time employees.

7. The revised Dearness Allowance sanctioned in this order shall also apply to the teaching and non-teaching staff working in aided educational institutions, employees under local bodies, employees governed by the University Grants Commission/All India Council for Technical Education scales of pay, the Teachers/Physical Directors/Librarians in Government and Aided Polytechnics and Special Diploma Institutions, Village Assistants in Revenue Department, Noon Meal Organisers, Child Welfare Organisers, Anganwadi Workers, Cooks, Helpers, Makkal Nala Paniyalar, Panchayat Assistants/Clerks in Village Panchayat under Rural Development and Panchayat Raj Department.

8. The expenditure shall be debited to the detailed head of account `03. Dearness Allowance’ under the relevant sub-minor, submajor and major heads of account.

9. The Treasury Officers / Pay and Accounts Officers shall make payment of the revised Dearness Allowance when bills are presented without waiting for the authorization from the Principal Accountant General (A&E) Tamil Nadu, Chennai-18.

(BY ORDER OF THE GOVERNOR)

K. SHANMUGAM
PRINCIPAL SECRETARY TO GOVERNMENT.

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Dearness Allowance to Rajasthan Government employees

GOVERNMENT OF RAJASTHAN
FINANCE DEPARTMENT
(RULES DIVISION}

No. F.6(1)FD(Rules)12008

Jaipur, dated : 15 SEP 2011

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 23.03.2011 shall be revised from 51% to 58% with effect from 01.07.2011.

The term ‘Pay’ for the purpose of calculation of Dearness Allowance shall be the Basic Pay, i.e. total 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 01.07.2011 to 31.08.2011 shall be credited to the General Provident Fund Account of the respective employees and cash payment shall be admissible from 01.09.2011, i.e. salary for the month of September, 2011 payable on 01.10.2011.

The arrear of DA from 01.07.2011 to 31.08.2011 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.

By order of the Governor,

(Sanjay Malhotra)
Secretary, Finance (Budget)

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Dearness Allowance from July 2011

DA Season Started, most of the central government employees started searching in search engines with keyword “Expected Dearness allowance from July 2011”. Already we know DA Percentage Calculation is based on AICPIN Value, currently Ministry of Labour & Employment Department released only four month AICPIN value (till April 2011), so we need another two month AICPIN value to get the exact DA percentage.

Hope this time all of us will get some reasonable DA percentage, last time we have received only 6% DA, however government increased certain allowance by 25%.

Lets hope for the best for reasonable DA from July 2011.

Source : IGECORNER

TN - 6% Dearness allowance to Tamilnadu Government Employees - Government Order

Manuscript Series

©
GOVERNMENT OF TAMIL NADU
2011

FINANCE (ALLOWANCES) DEPARTMENT
G.O.No.98, Dated 28th March 2011
(Panguni 14, Thiruvalluvar Aandu 2042)

ALLOWANCES – Dearness Allowance – Enhanced Rate of Dearness Allowance from 1st January 2011 – Orders – Issued.

READ - the following papers:

1. G.O.Ms.No.371, Finance (Allowances) Department, dated 24th September 2010.
2. From the Government of India, Ministry of Finance, Department of Expenditure, New Delhi, Office Memorandum No.1(2)/2011-E-II(B), dated 24.03.2011.

*****

ORDER:

In the Government Order first read above, orders were issued sanctioning revised rate of Dearness Allowance to State Government employees as detailed below:-

Date from which payable	Rate of Dearness Allowance (per month)
1st July 2010	45 per cent of Pay plus Grade Pay

2.The Government of India in its Office Memorandum second read above has now enhanced the Dearness Allowance to its employees from 45% to 51% with effect from 1st January, 2011.

3.Following the orders issued by the Government of India, the Government sanction the revised rate of Dearness Allowance to the State Government employees as indicated below:-

Date from which payable	Rate of Dearness Allowance (per month)
1st January, 2011	51 per cent of Pay plus Grade Pay

4. The Government also direct that the above increase in Dearness Allowance shall be paid in cash with effect from 01.01.2011.

5. The payment of arrears of Dearness Allowance for the months of January and February, 2011 shall not be made before the date of disbursement of salary of March, 2011. While working out the revised Dearness Allowance, fraction of a rupee shall be rounded off to next higher rupee if such fraction is 50 paise and above and shall be ignored if it is less than 50 paise.

6. The Government also direct that the revised Dearness Allowance sanctioned above, shall be admissible to full time employees who are at present getting Dearness Allowance and paid from contingencies at fixed monthly rates. The revised rates of Dearness Allowance sanctioned in this order shall not be admissible to part time employees.

7. The revised Dearness Allowance sanctioned in this order shall also apply to the teaching and non-teaching staff working in aided educational institutions, employees under local bodies, employees governed by the University Grants Commission/All India Council for Technical Education scales of pay, the Teachers/Physical Directors/Librarians in Government and Aided Polytechnics and Special Diploma Institutions, Village Assistants in Revenue Department, Noon Meal Organisers, Child Welfare Organisers, Anganwadi Workers, Cooks, Helpers, Makhal Nala Paniyalar, Panchayat Assistants/Clerks in Village Panchayat under Rural Development and Panchayat Raj Department.

8.The expenditure shall be debited to the detailed head of account `03. Dearness Allowance' under the relevant sub-minor, submajor and major heads of account.

9.The Treasury Officers / Pay and Accounts Officers shall make payment of the revised Dearness Allowance when bills are presented without waiting for the authorization from the Principal Accountant General (A&E) Tamil Nadu, Chennai-18.

(BY ORDER OF THE GOVERNOR)

K. SHANMUGAM
PRINCIPAL SECRETARY TO GOVERNMENT.

Original copy - Click here

Payment of Dearness Allowance to Railway employees

Ministry of Railways
(Railway Board)

S.No.PC-VI/ 251
No. PC-VI/2008/I/7/2/1

RBE No. 40 /201
New Delhi, dated 25.3.2011

The GMs/CAO(R),
All Indian Railways & Production Units
(as per mailing list)

Sub: Payment of Dearness Allowance to Railway employees - Revised rates effective from 01.01.2011.

Please refer to this Ministry's letter of even number dated 22.09.2010 (S.No PC-VI/227, RBE No.139/2010) on the subject mentioned above. The President is pleased to decide that the Dearness Allowance payable to Railway employees shall be enhanced from the existing rate of 45% to 51% with effect from 1st January, 2011.

2 The provisions contained in Paras 3, 4 & 5 of this Ministry's letter of even number dated 09.09.2008 (S.No. PC-VI/3, RBE No. 106/2008) 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 railway employees. The payment of arrears of Dearness Allowance for the months of January and February, 2011 shall not be made before the date of disbursement of salary for March, 2011 and no honorarium is payable for preparing separate bill for this purpose.

4 This issues with the concurrence of the Finance Directorate of the Ministry of Railways..

(Koshy Thomas )
Joint Director, Pay Commission-II
Railway Board

Original copy

Dearness Allowance for January 2011 - Government Order

Payment of Dearness Allowance to Central Government employees - Revised Rates effective from 1.1.2011.

No. 1(2)/2011-E-II (B)

Government of India

Ministry of Finance

Department of Expenditure

-------

New Delhi, the 24th March, 2011.

OFFICE MEMORANDUM

Subject: Payment of Dearness Allowance to Central Government employees - Revised Rates effective from 1.1.2011.

---------------

The undersigned is directed to refer to this Ministry's Office Memorandum No. 1(6)/2010-E-II(B) dated 22 September,2010 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 45% to 51% with effect from 1St January, 2011.

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

3 The additional instalment 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 for the months of January and February, 2011 shall not be made before the date of disbursement of salary of March, 2011.

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 be issued by the Ministry of Defence and Ministry of Railways, respectively.

6 In so far as the persons serving in the Indian Audit and Accounts Department are concerned, these orders issue after consultation with the Comptroller and Auditor General of India.

(Y.P.Sehgal)

Deputy Secretary to the Government of India

DA Order Copy - Click here

Cabinet approves 6% dearness allowance hike for central government employees

Nearly 50 lakh central government employees and 38 lakh pensioners can look forward to a 6% increase in their dearness allowance with the Union Cabinet approved the proposal on Tuesday.

If the move is approved, the dearness allowance, which is linked to the consumer price index, will rise from 45% currently to 51%, triggering a further change in the allowance structure. For instance, payments like conveyance allowance and children's education allowance will also increase by 25%.

Further, special compensatory allowance for those posted in remote areas such as the north-east and Jammu & Kashmir as central government employees in these areas are entitled to a Special Compensatory Allowance. Their special allowance goes up by 25% the moment the 50% trigger is breached.

While the move will provide some relief to government employees and pensioners whose salaries and pension are usually revised once a decade, the increase will cost the exchequer Rs 1,500 crore annually. Households have been combating high inflation, which in recent weeks was led by rising fruit and vegetable prices. Wholesale price index-based inflation is expected to be around 8% at the end of March.

Sources said the additional installment of DA will be released with effect from January this year. Typically, the increase takes place in two installments effective January 1 and July 1.

Source : Times of India

Govt may hike DA by 6% for employees, pensioners

The Centre is tomorrow likely to increase dearness allowance (DA) by 6% to 51%, benefiting over 50 lakh employees and 38 lakh pensioners.

The decision to hike DA is likely to be taken by the Union Cabinet at its meeting scheduled tomorrow, sources said.

The new DA, which will be effective from January 1, is provided to government staff and pensioners to compensate them for rising prices.

Presently, the DA is paid at 45% of the basic pay.

The increase in DA by 6%, sources said, would be in accordance with the formula prescribed by the Sixth Pay Commission for central government employees.

The decision will provide direct relief to around 50 lakh employees and 38 lakh pensioners.
The DA is revised twice in year with effect from January 1 and July 1. The relief comes amid high retail prices, as inflation has been ruling above 9%.

The Consumer Price Index (Industrial Workers), which is the basis for revising dearness allowance, was 9.47% in December and 9.30% in January.

The headline inflation, based on movement in wholesale prices was 8.31 in February, much above the comfort level of 5-6%. The food inflation, too, was hovering above 9%.

What will be the Dearness Allowance from January 2011 ?

The AICPI for all the 12 months are now published in Labour Bureau website. According to this Website the AICPI-IW for 12 months are given below.

January-172
February-170
March-170
April-170
May-172
June-174
July-178
August-178
September-179
October-181
November-182
December-185

Now the prediction and calculation over Dearness Allowance will come to an end. According to the All India Consumer Price Index for Industrial Workers for the last 12 months, it is expected that the Dearness Allowance will be 51% from January 2011.As we expected earlier, additional 6% will be added to the existing D.A of 45%..Hence we can expect that 51% Dearness Allowance will be paid to all the Central Government Employees from January 2011, if so government decides. The Government may take a decision in this matter by first week of March 2011.

Some of our viewers have raised the same question again and again in the comments forum that if D.A crosses 50% level whether it would be merged with D.A or not. It has been clarified that the D.A will not be merged with basic pay since it was not recommended by 6CPC.

But if the D.A crosses 50% level, some of the Allowances, which are compensatory in nature, will be raised by 25% as per the recommendation of 6CPC.
These Allowances are,

1. Children Education Assistance & Reimbursement of Tuition Fee
2. Advances for purchase of Bicycle Advacne, Warm clothing Advance, Festival Advance, Natural Calamity Advance
3. Special Compensatory Hill Area Allowance
4. Special CompensatoryScheduled / Tribal Area Allowance
5. Project Allowance
6. Speical Compensatory (Remote Locality) Allowance
7. Cycle Maintenance Allowance
8. Mileage for road journey all components of daily allowance on tour, rate of transportation of personal effects.
9. Rates of Conveyance Allowance under SR-25
10. Washing Allowance
11. Split Duty Allowance
12. Spl. Allowance for Child Care for Women with Disabilities and Education Allowance for disabled children
13. Cash Handling Allowance
14. Risk Allowance
15. Postgraduate Allowance
16. Desk Allowance
17. Bad Climate Allowance

Source : Vinmoney Blog

Rising food prices push retail inflation up in Dec

Food items pushed up retail price index-based inflation in December 2010, besides the more tracked wholesale price index, a point the Reserve Bank of India (RBI) will bear in mind while deciding on its monetary stance tomorrow.

While inflation for the items consumed by rural labour (CPI-RL) rose to 8.01 per cent in December from 6.95 per cent in the previous month, the one for agricultural labour (CPI-AL) moved up to 7.99 per cent from 7.14 per cent over the period.

Costlier onions, milk and other essential items resulted in higher inflation numbers, as was the case with the wholesale price index-based inflation number, which rose to 8.43 per cent from 7.48 per cent over the month.

The retail price inflation, in fact, had started moderating by November, as could be seen from the movement of the numbers for items consumed by industrial workers (CPI-IW), before the spurt in prices of food items, particularly onions, jacked up the figures.

CPI-IW (Consumer Price Index for Industrial Workers)-based inflation came down to 8.33 per cent in November from 9.7 per cent in the previous month.

This figure is all set to go up once the figure for December is out on January 31.

In its report on Macroeconomic and Monetary Developments, released a day ahead of the monetary review, RBI called this just “some reversal” of a generally moderating trend.

“Inflation, as measured by various consumer price indices, generally moderated during 2010-11, with some reversal witnessed in December...Various measures of inflation remained in the range of 8-8.4 per cent in November/December, 2010,” the report said.

The RBI, however, noted that all inflation numbers, based on retail as well as wholesale prices, remained elevated.

While the divergence between headline inflation last year was large, it has narrowed down significantly this year.

It is because food prices have much higher weight in the retail price based indices than just 14.34 per cent in WPI and now it is mainly food items that are leading to rise in inflation numbers.

“While the extent of divergence between WPI and CPI inflation narrowed significantly, both remained elevated leading to significant welfare costs,” RBI said. There are linkages between government outgo on heads like dearness allowance (DA), NREGA and retail inflation.

While DA for the central government employees is based on CPI (IW), NREGA payments are linked to CPI (AL).

Source : Business Standard

Dearness Allowance Percentage Overview for Central Government Employees

Dearness Allowance Percentages - Overview

All of us waiting for Dearness allowance percentage for January 2011, as per AICPIN calculation, we are going to get 6% Dearness allowance from January 2011.

Let us see the past Dearness allowance percentage for Central Government Employees.

Here is the DA Table from 1.1.1996 to 1.1.2004 :

As on	Rates of DA (%)
1.1.1996	0
1.7.1996	4
1.1.1997	8
1.7.1997	13
1.1.1998	16
1.7.1998	22
1.1.1999	32
1.7.1999	37
1.1.2000	38
1.7.2000	41
1.1.2001	43
1.7.2001	45
1.1.2002	49
1.7.2002	52
1.1.2003	55
1.7.2003	59
1.1.2004	61

CHART

(Note : Click image to enlarge)

The Fifth CPC had also recommended that

• Dearness allowance equal to 50% of the basic pay should be converted as dearness pay each time the Consumer Price Index increased by 50% over the base index.
• The dearness pay was to be counted as basic pay for all purposes, including retirement benefits.
• The Government allowed merger of dearness allowance equal to 50% of the basic pay into dearness pay to be counted as pay for all purposes barring TA/DA, LTC and entitlement for Government housing w.e.f. 1.4.2004.

The Government merged 50% of the DA with basic pay w.e.f. 1.4.04 and the dearness allowance continued to be calculated with reference to the AICPI (IW) average as on 1st January 1996 of 306.33 without changing the base consequent to the merger. Accordingly, DA at following rates was sanctioned by the Government from 1.7.04 till 1.7.07

As on	Rates of DA (%)
1.7.2004	14
1.1.2005	17
1.7.2005	21
1.1.2006	24
1.7.2006	29
1.1.2007	35
1.7.2007	41

CHART

(Note : Click image to enlarge)

The decision taken by the Government on the recommendations of the Sixth Central Pay Commission relating to DA, to decide that the DA admissible to all categories of Central Government employees shall be admissible from the dates mentioned below at the following rates:

As on	Rates of DA (%)
1.1.2006	0
1.7.2006	2
1.1.2007	6
1.7.2007	9
1.1.2008	12
1.7.2008	16
1.1.2009	22
1.7.2009	27
1.1.2010	35
1.7.2010	45

CHART

(Note : Click image to enlarge)

Let us wait for January 2011 Dearness Allowance Percentage.