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
Showing posts with label Central Government pensioners. Show all posts
Showing posts with label Central Government pensioners. Show all posts
Tuesday, March 22, 2011
Monday, March 21, 2011
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%.
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%.
Friday, November 5, 2010
Grant of Dearness Relief to Central Government pensioners who are in receipt of provisional pension or pension in the pre-revised scale of 5th CPC w.e
F. No. 42/18/2010-P&PW(G)
Government of India
Ministry of Personnel, Public Grievances & Pensions
Department of Pension & Pensioners’ Welfare
3rd Floor, Lok Nayak Bhavan,
Khan Market, New Delhi – 110003
Date: 27th October, 2010
OFFICE MEMORANDUM
Subject : Grant of Dearness Relief to Central Government pensioners who are in receipt of provisional pension or pension in the pre-revised scale of 5th CPC w.e.f. 1.7.2010.
In continuation to this Department’s OM No. 42/18/2010-P&PW(G) dated 29th June, 2010 sanctioning the Dearness Relief to those Central Government pensioners who are in receipt of provisional pension or pension in the pre-revised scales of 5th CPC, the President is pleased to grant the Dearness Relief to these Central Government pensioners as under :
(i) Those who are in receipt of provisional pension or pension in the pre revised scales of 5th CPC are entitled to Dearness Relief @ 103% w.e.f 1.7.2010.
(ii) The surviving CPF beneficiaries who have retired from service between the period 18.11.1960 to 31.12.1985 and are in receipt of ex-gratia @ Rs. 600/ p.m. w.e.f. 1.11.1997 under this Department’s OM No. 45/52/97-P&PW(E) dated 16.12.1997 are entitled to Dearness Relief @ 103% w.e.f. 1.7.2010.
2. The following categories of CPF beneficiaries who are in receipt of ex¬gratia payment in terms of this Department’s OM No. 45/52/97-P&PW(E) dated 16.12.1997 are entitled to DR @ 95% w.e.f. 1.7.2010.
(i) The widows and dependent children of the deceased CPF beneficiary who had retired from service prior to 1.1.1986 or who had died while in service prior to 1.1.1986 and are in receipt of Ex¬gratia payment of Rs. 605/- p.m.
(ii) Central Government employees who had retired on CPF benefits before 8.11.1960 and are in receipt of Ex-gratia payment of Rs. 654/-, Rs. 659/-, Rs. 703/- and Rs. 965/-.
3. Payment of DR involving a fraction of a rupee shall be rounded off to the next higher rupee. In their application to the pensioners/family pensioners belonging to Indian Audit and Accounts Department, these orders issue in consultation with the C&AG.
4. This issues with the concurrence of Ministry of Finance, Department of Expenditure vide their UO No. 1(4)/EV/2004 dated 12.10.2010.
(V.K.Wadhwa)
Under Secretary to the Government of India
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