F. No. 42/13/2012-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 – 110...
The Government of India, in its Office Memorandum fourth read above has enhanced the Dearness Allowance payable to its pensioners / family pensioners from 51% to 58% with effect from 1st July, 2011
Please refer to this Ministry’s letter of even number dated 25.03.2011 (S.No.PC-VI/251, RBE No.40/2011) 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 51% to 58% with effect from 1st July, 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 arrears may be charged to the salary bill for October, 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.
The undersigned is directed to refer to this Department’s 0M No. 42/15/2011-P&Pw(G) dated 29th March, 2011 on the subject mentioned above and to state that the President is pleased to decide that the Dearness Relief (DR) payable to Central Government pensioners/ family pensioners shall be enhanced from the existing rate of 51% to 58% w.e.f. 1st July, 2011.
Ahead of the festival season, the government on Thursday announced a 7 per cent hike in the dearness allowance of its employees which will give them some relief from near double digit inflation.
Besides the five million central government employees, about four million pensioners will stand to benefit from the decision, taken by the Union Cabinet.
However, employees, especially in the junior scales, do not seem to be happy with the quantum of pay hike.
The pay hike would be applicable from July 1. The DA for the government employees would increase from 51 per cent of the basic salary to 58 per cent.
"The inflation index, which is the basis of calculating the DA, is not actually reflecting the cost of living and erosion in employees remuneration due to price rise,"
Secretary General of the Confederation of Central Government Employees and Workers, K K N Kutty said.
The general inflation for August was at near one-year high of 9.78 per cent. The hike in DA and DR would cost the exchequer annually Rs 7,229 crore (Rs 72.29 billion), while for the remaining period of the current fiscal the implication would be Rs 4,819 crore (Rs 48.19 billion), Information and Broadcasting Minister Ambika Soni said.
The Union Cabinet today approved release of additional instalment of Dearness Allowance to Central Government employees and Dearness Relief to pensioners as due from 01.07.2011 at the rate of 7 per cent over the existing rate of 51 per cent.
The total financial implications on account of both Dearness Allowance and Dearness Relief would be Rs.7228.76 crore per annum and Rs.4819.22 crore in the current financial year.
Allowance - Dearness Allowance to Kerala State Government Employees and to the Teachers coming under UGC/AICTE/Medical Education Schemes.
Dearness Relief to Kerala State Government Pensioners and Family Pensioners including those coming under UGC/AICTE/Medical Education Schemes and those drawing Dearness Relief at Central Rates with effect from 01.01.2011 - Revision Orders Issued.
The Dearness Relief (DR) payable to Central Government pensioners/ family pensioners shall be enhanced from the existing rate of 45% to 51% w.e.f. 1st January, 2011.
The government today increased dearness allowance (DA) by 6 per cent to 51 per cent, benefiting over 50 lakh central government employees and 38 lakh pensioners.
"The decision to hike DA was taken by the Union Cabinet at its meeting here," a Union minister said.
The combined impact of the hike will be Rs 5,715.90 crore per annum. However in the next financial year, the burden on the exchequer would be Rs 6,668.52 crore after the additional 6 per cent DA payout is factored in from January 1 to March 31 this year.
The increased 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 per cent of basic pay.The increase in DA by 6 per cent would be in accordance withthe formula prescribed by the Sixth Pay Commission for central government employees.
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%.
