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%.
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.
Grant of Dearness Relief to Railway pensioners/family pensioners - Revised rate effective from 01.07.2010.
A copy of Office Memorandum No.42/18/2010-P&PW (G) dated 27.09.2010 of Ministry of Personnel, Public Grievances & Pensions (Department of Pension and Pensioners' Welfare) on the above subject is enclosed for your information and necessary action. These orders will apply mutatis mutandis on the Railways also.
Grant of Dearness Relief to Central Government pensioners/family pensioners - Revised rate effective from 1.7.2010.
The undersigned is directed to refer to this Department’s OM No. 42/18/2010-P&PW(G) dated 31.3.2010 on the subject mentioned above and to state that the President is pleased to decide that the Dearness Relief payable to Central Government pensioners shall be enhanced from the existing rate of 35% to 45% w.e.f. 1st July, 2010.
