1% Additional DA to CG Employees and Pensioners from July 2017 - Cabinet Approved Today

New Delhi: The Union Cabinet on Tuesday approved a 1% hike in dearness allowance (DA) and dearness relief (DR) to 5%, benefiting 48.85 central government employees and 55.51 lakh pensioners.

“The Union Cabinet chaired by Prime Minister Narendra Modi has approved release of an additional installment of dearness allowance to central government employees and dearness relief to pensioner with effect from July 1, 2017,” an official statement said.

The DA/DR has been hiked by 1 percent over the existing rate of 4 percent of the basic pay/pension to compensate for price rise and it is in accordance with the accepted formula based on the recommendation of 7th pay commission, the statement said.

The combined impact on the exchequer on account of both DA and DR would be Rs 3,068.26 crore per annum and Rs 2,045.50 crore in the financial year 2017-18 (for a period of 8 months from July 2017 to February 2018).

The hike in the DA hike is as per the agreed methodology of taking average of Consumer Price Index-Industrial Workers for the past 12 months.

Expected DA from Jan 2018 for Central Government Employees and Pensioners

The All India Consumer Price Index for Industrial Workers (CPI-IW) for July, 2017 increased by 5 points and pegged at 285. The Index increased by 1.79% between June, 2017 and July, 2017 when compared with the increase of 1.08% for the corresponding months of last year.

Dearness Allowance for CG Employees and Pensioners with effect from 1.1.2018 may be enhanced by 2% or 3% [Total DA percentage 7%(5% + 2%) or 8%(5% + 3%)]

Calculation of DA/DR based on AICPIN only

“Calculation of Dearness Allowance and Dearness Relief for Central Government Employees and Pensioners based on the methodology prescribed by the recommendations of Central Pay Commission”

Dearness Allowance is issued twice a year and the Seventh Pay Commission has adopted the same calculation methods that were prescribed by the Sixth Pay Commission.

The same series of the All-India Average Consumer Price Index Numbers for Industrial Workers (Base 2001=100) are used for the calculation of DA/DR to be continued. The 7th CPC recommendations are implemented from 1.1.2017 and no DA from 1.1.2017 to 1.7.2017. And from 1.7.2017, 2% DA calculated as per the same formula recommended by 6th CPC. And then now, same calculation with the Consumer Price Index, the figure of two percent was arrived.

Most of the Central Government employees feel that the enhancement of DA/DR is meager.

The Central Government had nothing to do with the Dearness Allowance issued to the Central Government employees in the past, which were as high as 10 percent. Similarly, the government is in no way connected with the current announcement of two percent DA/DR. 

The same AICPIN (CPI IW BY2001=100) adopted for the calculation of Dearness Allowance to draw their pay in the pre-revised pay scale of 5th and 6th CPC. For 6th CPC, 4% Dearness Allowance was calculated on the basis of the same method. In other words, it will be expected to increase from 132 percent to 136.

The Dearness Allowance is calculated based on the changes in the prices of essential commodities in 75 cities and towns in India, over a period of six months. The monthly data, called the AICPIN, are released each month, by the Labour Bureau under the Ministry of Labour and Employment.

Central Government employees and Pensioners are not only getting the DA and DR, also employees working under Bank, CPSE etc,. The CPI(I-W) series are used for the calculation of DA for Bank Staff and IDA for CPSE employees. Almost the same enhancement of DA will adopt for the employees working in State Governments. Consumer Price Index will impact on the salaries and pension of more than 2 crore employees and pensioners directly.

Just watch the difference of DA amount between 6th and 7th CPC…

	As on 1.1.2016	As on 1.7.2016	DA from 1.1.2017
6th CPC Basic Pay	10,000 (2400GP)	10,300	412 (4%)
7th CPC Matrix Pay	26,300	27,100	542 (2%)

Cabinet approves 2% DA hike from 01.01.2017 for Central Government Employees

NEW DELHI: The Centre on Wednesday increased dearness allowance and dearness relief to 4 per cent from the existing 2 per cent from January 1, 2017, benefiting 48.85 employees and 55.51 lakh pensioners.

"The Union Cabinet chaired by Prime Minister Narendra Modi has approved release of an additional instalment of dearness allowance to central government employees and dearness relief to pensioner with effect from January 1, 2017," an official statement said.

The DA/DR has been increased by 2 per cent over the existing rate of 2 per cent of the basic pay/pension to compensate for price rise and it is in accordance with the accepted formula based on the recommendation of 7th pay commission, the statement said.

This hike in DA/DR will benefit 48.85 lakh central government employees and 55.51 lakh pensioners, it said.

The statement said that the combined impact on the exchequer on account of both dearness allowance and dearness relief would be Rs 5,857.28 crore per annum and Rs 6,833.50 crore in the Financial Year 2017-18 (for a period of 14 months from January, 2017 to February, 2018).

Dearness allowance and dearness relief are provided to employees and pensioners to neutralise the impact of inflation on their earnings. The labour unions, however, are not happy with the proposed hike saying it would not be able to offset the real impact of price rise.

As per an agreed upon formula, the Centre hikes the allowance taking 12-month average of retail inflation. The government does not consider the price rise rate beyond a decimal point for deciding the rate of the dearness allowance.

The dearness allowance is paid as proportion of the basic pay of the central government employees.

Earlier last year, the government hiked DA by 6 per cent to 125 per cent of basic pay. The DA was later merged into the basic pay following the implementation of the 7th Pay Commission award.

(With inputs from agencies)

Centre to hike dearness allowance by 2% from January 1

Centre to hike dearness allowance by 2% from January 1

The Centre is likely to announce a hike of 2-4 per cent in dearness allowance for its about 50 lakh employees and 58 lakh pensioners later this month.

Dearness allowance and dearness relief are provided to employees and pensioners to neutralise the impact of inflation on their earnings. The labour unions, however, are not happy with the proposed hike saying it would not be able to offset the real impact of price rise.

"The dearness allowance as per the agreed formula by the Centre works out to be 2 per cent which would be effected from January 1, 2017," Confederation of Central Government Employees' president K K N Kutty told PTI.

However, Kutty expressed dissatisfaction over such a "meagre" hike saying that the consumer price index for industrial workers (CPI-IW) which is an agreed benchmark for increasing dearness allowance is far from reality.

He said that there is difference between the quantum of price rise of commodities ascertained by the labour bureau and the ministry of agriculture.

CPI-IW is an imaginary number due to poor quality of data collection by labour bureau and it is far from reality, he claimed.

The average CPI-IW to be taken into account for raising DA is 4.95 per cent from January 1 to December 31, 2017. Since the government has already hiked the dearness allowance by 2 per cent in October last year from July 1, 2016, it will now raise it further by 2 per cent.

As per an agreed upon formula, the Centre hikes the allowance taking 12-month average of retail inflation. The government does not consider the price rise rate beyond a decimal point for deciding the rate of the dearness allowance.

Therefore, despite the fact that the hike works out to be 2.95 per cent, the government will ignore the rate of price rise beyond decimal point and increase the DA by 2 per cent.

The dearness allowance is paid as proportion of the basic pay of the central government employees.

Source : The Times of India

Central govt employees expect January 2017 Dearness Allowance up to 3%

Central govt employees expect January 2017 Dearness Allowance up to 3%

New Delhi: Central government employees were not satisfied with the 2 percent Dearness Allowance(DA) announced by the government for July to December 2016 period. A discussion among the employees has begun what could be the expected DA in January 2017.

Illustration 1:

In case AICPIN value more than 277 for November and December 2016, then Dearness Allowance from January 2017 will be 3%

Illustration 2:

In case AICPIN less than 277 for November and December, then Dearness Allowance from January 2017 will be 2% due to demonetisation, AICPIN Value may be volatile for coming months, said the post.

:

Source :http://zeenews.india.com 

Dearness Allowances of 2% From July, 2016 orders issued by Ministry of Finance

No. 1/2/2016-E-II (B)

Government of India 

Ministry of Finance 

Department of Expenditure 

New Delhi, the 4th November, 2016. 

OFFICE MEMORANDUM 

Subject: Recommendations of the Seventh Central Pay Commission — Decision of Government relating to grant of Dearness Allowance to Central Government employees — Rates effective from 1.1.2016. 

The undersigned is directed to say that consequent upon the decision taken by the Government on the recommendations of the Seventh Central Pay Commission relating to Dearness Allowance, the President is pleased to decide that the Dearness Allowance (DA) to all categories of Central Government employees shall be admissible at the rate of 2 percent of basic pay per month, w,e.f.01.07.2016. 

2. The revised pay structure effective from 01.01.2016 includes the Dearness Allowance of 125% sanctioned from 01.01.2016 in the pre-revised pay structure. Thus, Dearness Allowance in the revised pay structure shall be zero from 01.01.2016. 

3. The term 'basic pay' in the revised pay structure means the pay drawn in the prescribed Level in the Pay Matrix but does not include any other type of pay like special pay, etc. 

4. The Government vide Resolution No. 1-2/2016-IC. dated 25/07/2016 has decided that till a final decision on Allowances is taken based on the recommendations of the Committee constituted under the Chairmanship of Finance Secretary & Secretary (Expenditure), all Allowances will continue to be paid at existing rates. 

5, The Dearness Allowance will continue to be a distinct element of remuneration and will not be treated as pay within the ambit of FR 9(21). 

6. The payment on account of Dearness Allowance involving fractions of 50 paise and above may be rounded to the next higher rupee and the fractions of less than 50 paise may be ignored. 

7. 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 respect of Armed Forces personnel and Railway employees, separate orders will be issued by the Ministry of Defence and Ministry of Railways, respectively. 

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

(Annie George Mathew) 

Joint Secretary to the Government of India

Source : http://finmin.nic.in/the_ministry/dept_expenditure/notification/da/DA01072016E.pdf

More DA for Central Government Employees

New Delhi, Oct. 27: The Union cabinet has approved the allocation of 2 per cent dearness allowance and relief to 50 lakh central government employees and 54 lakh pensioners in a decision timed with Diwali and citing price rise.

The DA installment will be paid with effect from July 1.

"The Union cabinet has given its approval to release an installment of DA to central government employees and dearness relief to pensioners from July 1, 2016, representing an increase of 2 per cent of the revised basic pay/pension, to compensate for price rise," an official release said.

The increase in dearness allowance or a pay correction to cope with the rising cost of living expenses, is expected to help the broader economy too.

The central government had increased DA by 6 percentage points to 125 per cent in March this year. The DA was later merged with the basic pay following the implementation of the pay commission recommendations.

The 2 per cent payout will result in an annual burden of Rs 5,622.10 crore on the government. For a period of eight months (July-February in 2016-17), it will be Rs 3,748.06 crore.

According to the release, the increase is in accordance with the accepted formula, which is based on the recommendations of the central pay panel. The central government employee unions wanted the DA to be increased by 3 per cent, not 2 per cent.

The president of the Confederation of Central Government Employees, K.K.N. Kutty said: "The 12-month average of the consumer price index for industrial workers from July 1, 2015, to June 30, 2016, works out to 2.92 per cent. Therefore, the unions had pressed for 3 per cent DA. We are not satisfied with this."

As the increase comes during the festive season, the additional money could spur consumer spending.

Railway Unions demand 3% DA hike

Railway Unions demand 3% DA hike

New Delhi: Expressing “dissatisfaction” over over the announcement of 2 per cent increase in dearness allowance by the government, railway unions have demanded it be raised to 3 per cent.

We have expressed dissatisfaction over the announcement of a meagre 2 per cent rise in DA by the Central government from July 1, 2016, National Federation of Indian Railwaymen M Raghavaiah said.

Ahead of Diwali, the Centre has announced 2 per cent dearness allowance for Central government employees effective from July.

“Central government employees and pensioners have been waiting eagerly for the announcement of DA since September 2016. But we are disappointed that the government has announced only 2 per cent whereas the 12-month average of Consumer Price Index for Industrial Workers from 1 July 2015 to 30 June 2016, works out to be 2.92 per cent,” Raghavaiah said and added “The Government ought to have been considerate in announcing this half-yearly hike in DA and rounded off to 3 per cent.”

All India Railwaymen Federation General Secretary S Gopal Mishra said 2 per cent DA is not satisfactory and it should be raised to 3 per cent.

PTI

DA Announced 2 per cent for central government employees, pensioners,w.e.f 01/07/2016

DA Announced 2 per cent for central government employees, pensioners,w.e.f 01/07/2016

Dearness Allowance hiked by 2 per cent for central government employees, pensioners: Indian Express News

Dearness allowance is provided to employees and pensioners to minimise the impact of price rise on their earnings.

The Cabinet on Thursday approved 2 per cent hike in Dearness Allowance (DA) for central government employees and pensioners, effective from July 1, 2016. The proposal to hike the DA was approved during the Cabinet meeting today afternoon at the Prime Minister’s Office. The announcement, which comes ahead of Diwali, is set to bring cheer to around 50 lakh central government employees and 58 lakh pensioners in the country.

Dearness allowance is provided to employees and pensioners to minimise the impact of price rise on their earnings. Earlier this year, the government hiked dearness allowance by 6% to 125 % of the basic pay. It was later merged into the basic pay, based on the recommendation of the 7th Pay Commission Panel.

Read at: Indian Express

Centre may announce 2% DA for staff, pensioners: PTI

New Delhi, Oct 26 (PTI) In what could bring cheers to 50 lakh central employees and 58 lakh pensioners ahead of Diwali, the Centre is all set to announce 2 per cent dearness allowance to be effective from July 1, 2016.

"The proposal to provide 2 per cent dearness allowance and dearness relief to central government employees and pensioners respectively, is listed on agenda of the Union Cabinet meeting scheduled for tomorrow," a source said.

Dearness allowance and dearness relief is provided to employees and pensioners to neutralise the impact of price rise on their earnings.

Earlier this year the government hiked Dearness Allowance by 6 per cent to 125 per cent of the basic pay. The DA was later merged into the basic pay following implementation of 7th Pay Commission award.

The central government employee unions want that the DA should be increased by 3 per cent and not 2 per cent which is being considered by the centre.

President of Confederation of Central Government Employees K K N Kutty told PTI: "The 12-month average of Consumer Price Index for Industrial Workers from July 1, 2015 to June 30, 2016, works out to be 2.92 per cent. Therefore the unions had pressed for 3 per cent DA. We are not satisfied with this." 

As per the agreed formula, government increases DA on the basis of 12-month average of the retail inflation and does not consider the price rise rate beyond decimal point for deciding the rate of dearness allowance.

Read at PTI

Latest News about DA for July 2016 will be announced shortly

DA from July 2016

DA of Central Government employees and pensioners effective from 1st July 2016 is likely to be approved in the Union Cabinet Meeting to be held on 27th October.

Comment your views whether 2% or 3% in below comment box

Secretary, NC JCM writes to Secretary DoE for grant of D A w.e.f. 01.07.2016

Secretary, NC JCM writes to Secretary DoE for grant of D A w.e.f. 01.07.2016

Govt is actively considering central D.A. increase from 01.07.2016

• Sources close to Finance Ministry told that the initial installment of DA to central government employees on the revised pay structure w.e.f 1.7.2016 is under consideration.
• There is a confusion about percentage of D.A. payable from 1st July 2016 to Central Govt. employee and pensioners. There may be a hike of 2 to 3 percentage point, which is to be announced very soon, probably in this week.
• Meanwhile Govt asked the Pay Research Unit to calculate exact financial implication for every percentage of D.A. increase, which is a routine matter.

Central Government has a proposal to Pay 1% DA from July 2016 as an interim Measure

Central Government has a proposal to Pay 1% DA from July 2016 as an interim Measure

The Sources Close to the Ministry of finance informed that there is proposal to Pay 1% DA from July as an interim Measure.It is said that the Central Government has not yet decided about the DA rates in Revised Pay scale.

Sources close to Finance Ministry told that the initial installment of DA to central government employees on the revised pay structure w.e.f 1.7.2016 is under consideration. Mean time there is a proposal to pay the DA from July 2016 at the rate of 1% to all CG Staffs. It will be a shocking news for CG Staff, since they are already expecting 2 to 3% DA from July 2016.

PRU is asked to submit Financial Implication of 1% DA

But the fact is the Department of Expenditure has directed the PRU of the Finance Ministry to furnish the details of additional Financial Implications for 1% increase of DA with effect from 1.7.2016 on the revised Pay Structure.

Further the Pay Research Unit has been requested to furnish financial implications for the Period of July 2016 to February 2017 on account of granting 1% DA from July 2016 to all central government employees including Armed Forces and UT Employees.

According to the above information, it is believed that announcement of 1% DA for July installment may be made any time soon.

DA from July 2016 in 7th pay Commission may be 2% or 3%

DA from July 2016 in 7th pay Commission is 2% or 3%

DA from July 2016 in 7th pay Commission is 2% or 3% is yet to be confirmed

It seems that the DA from July 2016 in 7th Pay Commission is not yet finalized by Central Government. There is confusion persists on the rate of Dearness Allowance to be paid from 1st July 2016 in revised Pay . The AICPIN average for the year 2015 to be taken as Base Index for calculation of DA in 7th CPC as the DA has been neutralized to arrive the revised Pay.

The actual AICPIN Average for 2015 is 261.33. As per this AICPIN average, the DA to be paid at the rate of 2% from July 2016 in 7th CPC . But the NCJCM has contended that it should be paid at the rate of 3%.

The NCJCM staff side said that as per the practice of fraction is being ignored, 0.75 is ignored from actual DA 125.75 as on 1st January 2016. Since the 125% DA was merged to revise the 7th CPC pay, Accordingly, the AICPIN average of 2015 has to be revised to 260.46 from 261.33 to arrive the exact rate of DA of 125% .

It is obvious that the NCJCM Staff Sides claim has sufficient merits to be considered favorably by the Government. In that case, the DA to be paid from July 2016 will be 3%.

The NCJCM Staff Side should be appreciated for this timely intervention and effort.

The central Government need to take decision in this regard soon, as it has been passed third week of September. Usually the announcement of DA for July every year will be made in the first or second week of September.

Source: http://www.gservants.com/