Cabinet approves modifications in the 7th CPC recommendations on pay and pensionary benefits
Dearness Allowance Allowance Committee 7th Pay Commission Income Tax exemption
4% Additional DA for TN State Government Employees from Jan 2017 Allowances Committee Report and Financial Expenditure Committee on 7th CPC Allowances : FM Press Note Income Tax exemption benefit on Housing Loan Interest (FAQ)

Posts Tagged ‘Dearness Allowance’

Allowances to Central Government Employees – Questions in Parliament

All allowances (except Dearness Allowance) to Central Government Employees – Questions in Parliament

Allowances to Government Employees

In Lok Sabha on 18.11.2016, the Finance Minister Shri Arun Jaitley has replied in a written form regarding the allowances to Central Government employees recommended by the 7th Central Pay Commission. The complete text of the reply is reproduced and given below for your information.

“In view of the number of representations received with regard to substantial changes with the existing provisions relating to Allowances recommended by the 7th Central Pay Commission, the Government has set up a Committee to examine the recommendations of the Commission on allowances (except Dearness Allowance). The Committee has been asked to go into the recommendations of the Commission on various allowances and, having regard to the representations made by the staff associations as also the suggestions of the concerned Ministries/Departments and to make recommendations as to whether any changes in the recommendations of the Commission are warranted and, if so, in what form. Till a final decision is taken by the Government based on the recommendations of this Committee, all allowances (except Dearness Allowance) will continue to be paid at existing rates in the existing pay structure. The Committee, constituted vide order dated 22.7.2016, is to submit its report within four months.

The Committee has been interacting with various stake-holders to discuss their demands and has so far held discussions with National Council (Staff Side), Joint Consultative Machinery, representatives from staff associations and officials from Ministry of Health & Family Welfare, Ministry of Home Affairs and Department of Posts. The Committee may also interact with the representatives of some other major Ministries/Departments and stakeholders with whom consultations are yet to be held before finalizing its Report. On submission of the Report, the matter pertaining to allowances will be considered by the Government and appropriate decision will be taken thereafter.”

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Be the first to comment - What do you think?  Posted by admin - May 23, 2017 at 1:54 pm

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Retired Kendriya Vidyalaya teachers demand payment of pending DA

Retired Kendriya Vidyalaya teachers demand payment of pending DA

An association of retired Kendriya Vidyalaya teachers has written to the Centre over the delay in payment of dearness allowance (DA) to them.

The Retired Teachers Welfare Society, which shot off a letter to Prime Minister Narendra Modi, said the DA dues are pending since July 2016.

“We wrote to the prime minister in March and again in April drawing his attention to the issue of non-payment of 7 per cent DA to retired teachers of KVS. The PMO forwarded the letter to the Ministry of Human Resources Development in mid- April, but no action has been taken yet,” the society’s general secretary, C M Dubey, said today.

The letter was sent by the Bhopal chapter of the society.

On recommendations of the Union Cabinet, 7% DA was payable from July 2016 and subsequently 4% from January 2017 to the regular as well as retired employees of the Central government, including KVS teachers, Dubey said.

“The DA is being paid to regular employees, but not to retired ones. This is causing hardship to a large number of retired personnel,” he said.

PTI

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Categories: KV School   Tags: , , , ,

7th Pay Commission Unions leaders to meet officials today for higher allowances

7th Pay Commission Unions leaders to meet officials today for higher allowances

New Delhi: Central government employees unions leaders today is likely to to meet top government officials for higher allowances.

The central government employees now get all allowances except dearness allowance at the old rates until the cabinet approval of higher allowances.

The the Committee on Allowances, headed by Finance Secretary Ashok Lavasa was constituted in June last year after the government implemented the recommendation of the 7th Pay Commission from January 1, 2016 in respect of basic pay and dearness allowances.

The 7th Pay Commission had recommended that of a total of 196 allowances, 52 be abolished altogether and 36 be abolished as separate identities by subsuming them in another allowance, which triggered resentment among central government employees that governments complied with formation of the Committee on Allowances.

The Committee on Allowances submitted its report to Finance Minister Arun Jaitley on April 27.

The 7th Pay commission had recommended abolition of or subsuming of allowances like acting, assisting cashier, cycle, condiment, flying squad, haircutting, rajbhasha, rajdhani, robe, shoe, shorthand, soap, spectacle, uniform, vigilance and washing.

It also recommended slashing the House Rent Allowance (HRA) from 30, 20 and 10 per cent to 24, 16 and 8 percent of the Basic Pay for Class X, Y and Z cities respectively.

The unions leaders of central government employees are pressing hard for immediate cabinet approval of higher allowances.

TST

Be the first to comment - What do you think?  Posted by admin - May 16, 2017 at 5:41 pm

Categories: 7CPC   Tags: , , , , , , , ,

Dearness Allowance for Workmen and Officer Employees in banks for the months of May, June and July 2017 under X BPS/ Joint Note dated 25.5.2015

Indian Banks Association
HR & Industrial Relations

No.CIR/HR&IR/761D/2017-18/2625

April 29, 2017

All Members of the Association
(Designated Officers)

Dear Sirs,

Dearness Allowance for Workmen and Officer Employees in banks for the months of May, June and July 2017 under X BPS/ Joint Note dated 25.5.2015

The confirmed All India Average Consumer Price Index Numbers for Industrial Workers (Base1960=100) for the quarter ended March 2017 are as follows:

January 2017 6254.30
February 2017 6254.30
March 2017 6277.12

The average CPI of the above is 6261.91 and accordingly the number of DA slabs is 456 (6261.91-4440 = 1821.91/4= 456 slabs). The last quarterly payment of DA was at 469 slabs. Hence, there is a decrease in DA slabs of 13, i.e. 456 slabs for payment of DA for the quarter May, June and July 2017.

In terms of clause 7 of the 10th Bipartite Settlement dated 25.05.2015 and clause 3 of the Joint Note dated 25.05.2015, the rate of Dearness Allowance payable to workmen and officer employees for the months of May, June and July 2017 shall be 45.60 % of ‘pay’. While arriving at dearness allowance payable, decimals from third place may please be ignored.

Yours faithfully,

S/d,
Chauhan
Senior Vice President

Signed Copy

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4% Additional Dearness Allowance (DA) for Tamilnadu State Government Employees from Jan 2017

4% Additional Dearness Allowance (DA) for Tamilnadu State Government Employees from Jan 2017

4percent-da-tn-govt

The Chief Minister of Tamil Nadu Government today announced a four percent of Dearness Allowance to its employees and pensioners with effect from January 2017.

Today the Chief Minister of Tamil Nadu has declared an another installment of additional 4% Dearness allowance with effect from Jan 2017 to the employees working under Tamil Nadu Government. Following the announcement, the existing percentage 132% is increased to 136% from Jan 2017.

Following the Central Government, the state government has declared DA to its employees from the existing rate of 132% to 136% with effect from 1.7.2016 as per existing basic pay.

Detailed order is awaited.

Be the first to comment - What do you think?  Posted by admin - April 26, 2017 at 6:30 pm

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Family pension to freedom fighters

Family pension to freedom fighters

GOVERNMENT OF INDIA
MINISTRY OF  HOME AFFAIRS
RAJYA SABHA
UNSTARRED QUESTION NO-1502
ANSWERED ON-15.03.2017

Family pension to freedom fighters

1502 . Shri R. Vaithilingam

(a) whether it is a fact that the Centre is giving family pension to the freedom fighters;

(b) if so, the details thereof;

(c) whether Government is considering to revise and increase family pension; and

(d) if so, the details thereof and if not, the reasons therefor?

ANSWER

MINISTER OF STATE IN THE MINISTRY OF HOME AFFAIRS (SHRI HANSRAJ GANGARAM AHIR)

(a) to (d): Yes Sir. The Centre is giving family pension to the eligible dependents of the freedom fighter pensioners under Swatantrata Sainik Samman Pension Scheme, 1980, administered by Ministry of Home Affairs. As per the provisions of this Scheme, after death of the freedom fighter pensioner, his/her spouse(widow/widower) and after death of spouse, his/her unmarried & un-employed daughters (up to maximum of three such daughters at any point of time) and thereafter, mother or father of the freedom fighter pensioner are granted dependent family pension.

The freedom fighter pension/family pension has already been revised and increased recently by the Central Government with effect from 15.08.2016. The amount of pension being given under this scheme to different categories of freedom fighters and their dependents are as at Annexure. Dearness Allowance/Relief as given to the Central Government Employees/pensioners has been made applicable to the freedom fighter pensioners also.

Annexure

Monthly Amount of Pension provided under Swatantrata Sainik Samman Pension Scheme, 1980

Sl.No Category of freedom fighters Amount of pension before the enhancement on 15.08.2016 including Dearness Relief (Per Month) Present amount of pension after the enhancement with effect from 15.08.2016(Per Month)
1. Ex-Andaman Political Prisoners/spouses Rs.24,775/- Rs.30,000/-
2. Freedom fighters who suffered outside British India/spouses Rs.23,085/- Rs.28,000/-
3. Other Freedom Fighters/ spouses including INA Rs.21,395/- Rs.26,000/-
4. Dependent parents/eligible daughters (maximum 3 daughters at any point of time) Rs.3,380/-(dependent parents)Rs.5,070/-(daughters) 50% of the sum that would have been admissible to the Freedom Fighter, i.e., in the range of Rs.13,000/- to Rs.15,000/-

Source: RAJYA SABHA Q&A

Be the first to comment - What do you think?  Posted by admin - April 15, 2017 at 10:22 pm

Categories: Pension   Tags: , , , , , , , ,

Rate of Dearness Allowance applicable w.e.f.1.7.2016 and w.e.f.1.1.2017 to employees of Central Government and Central Autonomous Bodies continuing to draw their pay in the pre-revised pay scales as per 5th Central Pay Commission

DA Order for Autonomous Bodies pre-revised pay scales as per 5th CPC

No.1/3/2008-E.II(B)
Government of India
Ministry of Finance
Department of Expenditure

New Delhi, dated the 7th April, 2017.

OFFICE MEMORANDUM

Subject:- Rate of Dearness Allowance applicable w.e.f.1.7.2016 and w.e.f.1.1.2017 to employees of Central Government and Central Autonomous Bodies continuing to draw their pay in the pre-revised pay scales as per 5th Central Pay Commission

The undersigned is directed to refer to this Department’s O.M.of even No. dated 22nd April, 2016 revising the rates of Dearness Allowance w.e.f.01.01.2016 in respect of employees of the Central Government and Central Autonomous Bodies continuing to draw their pay in the pre-revised pay scales as per 5th Central Pay Commission.

2. The rate of DA admissible to above categories of employees of the Central Government and Central Autonomous Bodies shall be enhanced from the existing rate of 245% to the revised rates as under:

Date from which payable Rate of Dearness Allowance admissible per month
1.7.2016 256% of basic pay
1.1.2017 264% of basic pay

3.The provisions contained in paras 3, 4 and 5 of this Ministry’s O.M. No. 1(13)/97-E.II(B) dated Yd October, 1997 shall continue to be applicable while regulating Dearness Allowance under these orders.

4. The contents of this Office Memorandum may also be brought to the notice of all organisations under the administrative control of the Ministries/Departments which have adopted the Central Government scales of pay.

(Nirmala Dev)
Deputy Secretary to the Govt. of India

Original Order Copy

Be the first to comment - What do you think?  Posted by admin - April 8, 2017 at 6:06 pm

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DA Order from 1.1.2017 to Autonomous Bodies as per 6th Pay Commission

Rate of Dearness Allowance applicable w.e.f.1.1.2017 to employees of Central Government and Central Autonomous Bodies continuing to draw their pay in the pre-revised pay scale/grade pay as per 6th Central Pay Commission

No. 1/3/2008-E.II(B)
Government of India
Ministry of Finance
Department of Expenditure

New Delhi, dated the 7th April, 2017.

OFFICE MEMORANDUM

Subject: Rate of Dearness Allowance applicable w.e.f.1.1.2017 to employees of Central Government and Central Autonomous Bodies continuing to draw their pay in the pre-revised pay scale/grade pay as per 6th Central Pay Commission
The undersigned is directed to refer to this Department’s O.M.of even No. dated 9th November, 2016 revising the rates of Dearness Allowance w.e.f.01.07.2016 in respect of employees of Central Government and Central Autonomous Bodies continuing to draw their pay in the pre-revised pay scale/grade pay as per 6th Central Pay Commission.

2. The rate of DA admissible to above categories of employees of Central Government and Central Autonomous Bodies shall be enhanced from the existing rate of 132% to 136% w.e.f.1.1.2017.

3. 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.

4. The contents of this Office Memorandum may also be brought to the notice of all organisations under the administrative control of the Ministries/Departments which have adopted the Central Government scales of pay

(Nirmala Dev)
Deputy Secretary to the Govt. of India

Original Order Copy

Be the first to comment - What do you think?  Posted by admin - at 5:56 pm

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Grant of Dearness Allowance to Central Government employees – Revised Rates effective from 1.1.2017

Grant of Dearness Allowance to Central Government employees – Revised Rates effective from 1.1.2017

Grant of Dearness Allowance to Central Government employees

DA Order Jan 2017 – Finmin Released Dearness Allowance Order

No. 1/3/2017-E-II(B)
Government of India
Ministry of Finance
Department of Expenditure

North Block, New Delhi
Dated the 30th March, 2017.

OFFICE MEMORANDUM

Subject : Grant of Dearness Allowance to Central Government employees – Revised Rates effective from 1.1.2017.

The undersigned is directed to refer to this Ministry’s Office Memorandum No. 1/2/2016-E-II (B) dated 4th November, 2016 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 2% to 4% of the basic pay with effect from 1st January, 2017.

2. The term ‘basic pay’ in the revised pay structure means the pay drawn in the prescribed Level in the Pay Matrix as per 7th CPC recommendations accepted by the Government, but does not include any other type of pay like special pay, etc.

3. 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).

4. 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 Tess than 50 paise may be ignored.

5. The payment of arrears of Dearness Allowance shall not be made before the date of disbursement of salary of March, 2017.

6. 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.

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

(Nirmala Dev)
Deputy Secretary to the Government of India

DA Order Jan 2017

Be the first to comment - What do you think?  Posted by admin - March 30, 2017 at 5:37 pm

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Notification on Dearness allowance (DA) this week

Notification on Dearness allowance (DA) this week

New Delhi: The Central government has announced to release of an additional instalment of 2 per cent of dearness allowance (DA) to central government employees and dearness relief to pensioner with effect from January 1, 2017.

Union Finance Ministry on Monday said that notification in this regard is expected to be issued this week.

The government is to notify its decision to give dearness allowance (DA) and dearness relief (DR) to 4 per cent from existing 2 per cent from January 1, 2017, benefiting 48.85 lakh is employees and 55.51 lakh pensioners.

The Finance Minister Arun Jaitley moved the cabinet note on March 16 for approval of releasing of an additional instalment of 2 per cent of dearness allowance (DA).

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 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).

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

The Confederation of Central Government Employees had termed it as a meagre hike in view of actual rise in cost of living index saying the CPI-IW was far from reality.

The union had also said that there was a lot of variation in the rates of price rise of commodities by Ministry of Agriculture and CPI-IW.

TST

Be the first to comment - What do you think?  Posted by admin - March 27, 2017 at 11:52 am

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

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

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%)
da-calculation-7th-CPC

Source: www.govtenews.com

Be the first to comment - What do you think?  Posted by admin - March 20, 2017 at 7:48 pm

Categories: 7CPC, AICPIN   Tags: , , , , , ,

7th Pay Commission: Higher allowances to be proposed in this month

7th Pay Commission: Higher allowances to be proposed in this month

New Delhi: The Committee on Allowances will propose to increase allowances of central government employees, besides dearness allowance (DA) in this month.

DA is being paid to them with their pay packages.

The Committee on Allowances, under Finance Secretary Ashok Lavasa, was formed in July 2016 following protests by government employees over recommendations of the 7th Pay Commission on allowances.

The 7th Pay Commission had recommended of abolishing 51 allowances and subsuming 37 others out of 196 allowances.

The committee was initially given four months time to submit the report to Finance Minister Arun Jaitley.

Later, the Finance Minister extended the deadline for report submission to February 22, 2017.

The Committee on Allowances is yet to submit its report, the Minister of State for Finance Arjun Ram Meghwal said in Lok Sabha on March 10.

However, he said that the deliberations of the committee are in the final stages.

Besides the basic salary, a large portion of a central government employee’s salary is the house rent allowance (HRA); some changes are to be made in this category of the recommendations of the 7th Pay Commission on allowances,

“The Committee on Allowances has decided against reducing the house rent allowance (HRA). The 7th Pay Commission suggested bringing down the HRA to 24 per cent, 16 per cent and 8 per cent respectively depending on type of cities,” the Finance Ministry’s officials said.

The officials also said that the Committee on Allowances would suggest, the HRA is to be kept as it was under the Sixth Pay Commission at 30 per cent, 20 per cent, and 10 per cent respectively.

The Committee on Allowances is likely to remain constant the Transport Allowance for central government employees as 6th Pay Commission recommendations including Dearness Allowance(DA), the sources added.

So, the employees now get all allowances except dearness allowance, according to the 6th Pay Commission recommendations until issuing of higher allowances notification.

The higher allowances most probably to implement from the month of April and the cabinet may give its nod in this month, the sources confirmed.

TST

Be the first to comment - What do you think?  Posted by admin - at 8:15 am

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4% of 7th CPC Basic Pay as DA from Jan 2017

4% of 7th CPC Basic Pay as DA from Jan 2017

7thCPC-basicpay-expected-da

“The central cabinet has given its approval for issuing additional Dearness Allowance of 2% from July 1, 2017 onwards.”

Including the additional 2% DA announced earler by the Central Government, DA will be 4% of the 7th CPC basic pay from Jan 2017 for Central Government Employees.

With the Confederation of Central Government employees announced a nationwide day-long strike on 16th March 2017, the government announced an additional Dearness Allowance of 2 percent a day before on 15th March 2017.

The employees believe that the announcement was made much earlier. Even last year, the cabinet issued its approval for the second installment of July only on October 27. The Ministry of Finance issued the Government Order on November 4. But this time, in an unexpected and surprising move, the Dearness Allowance is announced much before its due time. The payment of Dearness Allowance will be issued to all categories of Central Government employees only after the Ministry of Finance issues an Office Memorandum.

Be the first to comment - What do you think?  Posted by admin - March 18, 2017 at 5:05 pm

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Cabinet approves 2% Dearness Allowance to Central Government Employees and Pensioners

Cabinet approves additional 2% Dearness Allowance / Dearness Relief due from January, 2017

The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi has approved release of an additional instalment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners w.e.f. 01.01.2017. It has increased by 2% over the existing rate of 2% of the Basic Pay/Pension, to compensate for price rise.

This increase is in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission.

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).

This will benefit about 48.85 lakh Central Government employees and 55.51 lakh pensioners.

Source: PIB

Be the first to comment - What do you think?  Posted by admin - March 15, 2017 at 10:08 pm

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Merger of Dearness Allowance equal to 50% of basic pay w.e.f. 01/04/2004 – Reckoning as pay for running staff

Merger of Dearness Allowance equal to 50% of basic pay w.e.f. 01/04/2004 – Reckoning as pay for running staff

GOVERNMENT OF INDIA
MINISTRY OF RAILWAYS
RAILWAY BOARD

No. EP&A)-II/2006/RS-28.

New Delhi, dated 22.11.2016.

The General Secretary,
National Federation of Indian Railwaymen,
3, Chelmsford Road,
New Delhi – 110 055.

Sub.:- Merger of Dearness Allowance equal to 50% of basic pay w.e.f. 01/04/2004 -Reckoning as pay for running staff.

Ref.: (i) DC/JCM Item No. 15/2009.GS/NFIR’s letter No. IV/RSAC/Conl/Vol.VI dated 28/03/2016

 

Please refer to your letter dated 28.03.2016 under reference no. (ii) on the subject noted above. Iii this connection, it is mentioned that Board’s letter dated 21.10.2014 addressed to both the Federations highlighted that the basis for the exclusions was the Ministry of Finance’s OM dated 01.03.2004 on the merger of 50% DA with Basic Pay that was adopted by the Ministry of Railways. Vide letter dt. 28.03.2016, however, NFIR. has not agreed with the reply and has reiterated that the exclusions violate the IREM provision of. Running Allowance and that the OM dt. 01.03.2004 of MoF is not relevant in this connection.

For a better understanding of the logic on which the three exclusions have been made the table given below may kindly be seen:-

Clause No. Benefit of 30% pay element (mentioned in the clause)applicable to Running Staff Relevant wording in MoF O.M. dated 01.03.2004 pertaining to the benefit Remarks
a Entitlement for pass/ PTO LTC Specifically excluded from revision of entitlement on merger of 50% DA with Basic Pay As Railways do not have LTC. Pass /PTO revision excluded accordingly vide RBE No.77/2008
d Fixation in pay in Stationary Posts Fixation of pay not included as an admisssble benefit for revision of entitlement on merger of 50% DA with Basic Pay Counting of the benefit (of merger of DA with Basic) for Fixation of pay is an issue pertaining to all Government employees and not merely Running Staff of Railways. When this benefit has not been extended to any Government employee, it cannot be extended to Running Staff consolation. RBE No.77/2008 has been issued accordingly. As erest while Basic Pay element (without merger of 50% DA) however continued to be admissible for Fixation of pay of Running Staff in Stationary posts, there is no violation of relevant REM provision.
g Entitlement of Quarters Government accomadation specifically excluded from revision of entitlement on merger of 50% DA with Basic Pay As Railway Quarters are Government accomadation, revision of entitlement has been excluded accordingly vide RBE No.77/2008

As brought out in the table above there has been no violation of the Rules.It is therefore requested that the item may be closed.

For Secretary Railway Board

Click here to View the Full Order

Be the first to comment - What do you think?  Posted by admin - March 9, 2017 at 8:12 pm

Categories: Dearness Allowance   Tags: , , , , ,

Expected DA: Cabinet to approve the Dearness Allowance hike soon

Expected DA: Cabinet to approve the Dearness Allowance hike soon

“The Central cabinet is likely to give its approval to a two percent Dearness Allowance hike, with effect from January 2017, to the Central Government employees.”

The cabinet is, at its next meeting, expected to give its approval to the additional Dearness Allowance of two percent to Central Government employees and pensioners, to come into effect from January 1, 2017 onwards.

The 2% Additional Dearness Allowance hike will be calculated on the basis of the basic pay as recommended by the Seventh Pay Commission, and will be given to more than 47 lakh Central Government employees and 53 lakh pensioners, of which 14 lakh employees and 18 lakh pensioners are from the defence forces.

The Dearness Allowance, issued once every six months, is given to Central Government employees and pensioners to help them manage the increase in prices of essential commodities. The Dearness Allowance is calculated on the basis of the Consumer Price Index Numbers for Industrial Workers on Base Year 2001=100.

The percentage for January 2017 was arrived at by recording the prices of essential commodities at 78 towns and cities across the country, for the months of July 2016 till December 2016. Based on the data and calculation, the percentage may be fixed at 4.95 percent. But, according to the method prescribed by the Pay Commission, the decimal numbers are ignored. Hence, a Dearness Allowance of four percent will be issued with effect from January 1, 2017 onwards.

The table is given below for more information to arrive the percentage calculation.

 

M/Y CPI(IW)BY 2001=100 Total 12 Months 12 Monthly Average % Increase Over 261.42 for DA
Jul -16 280 3245 270.42 3.44
Aug – 16 278 3259 271.58 3.88
Sep – 16 277 3270 272.50 4.23
Oct – 16 278 3279 273.25 4.53
Nov – 16 277 3286 273.83 4.75
Dec – 16 275 3292 274.33 4.95

Be the first to comment - What do you think?  Posted by admin - March 6, 2017 at 7:28 pm

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2% Dearness Allowance Hike Likely For Central Government Employees From January 1

2% Dearness Allowance Hike Likely For Central Government Employees 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.

New Delhi: 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.

Kutty said that the federation in the next meeting of the national council would make a case for considering the fractions while fixing DA.

The national council is an apex forum functioning under the Department of Personnel and Training where unionists and senior official discuss issues concerning central 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.

At present the Central government employees and pensioners are entitled to 2 per cent dearness allowance, which was effected from July 1, 2016.

Be the first to comment - What do you think?  Posted by admin - at 10:19 am

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AICPIN for the month January 2017

AICPIN for the month January 2017

Consumer Price Index for Industrial Workers (CPI-IW) for the month of January 2017.

The Labour Bureau today published the statistical index of CPI-IW for the calculation purpose of Dearness Allowance and Dearness Relief for the existing and retired employees of Central Government. This Consumer Price Index also used for the calculation of Dearness Allowance for Workmen and Officers Employees in Banks.

The All-India CPI-IW for January 2017 decreased by one point and stood at 274.

For more details, Click the link to view the Press Release

Be the first to comment - What do you think?  Posted by admin - February 28, 2017 at 10:06 pm

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7th Pay Commission: Transport Allowance not to be hiked

7th Pay Commission: Transport Allowance not to be hiked

New Delhi: The Transport Allowance for central government employees will not be hiked and remain the same as 6th Pay Commission recommendations including Dearness Allowance(DA).
The Finance Ministry today informed about the report of the ‘Committee on Allowances’, headed by Finance Secretary Ashok Lavasa and said no hike in Transport Allowance (TPTA) for central government employees in its report. The committee accepted the 7th Pay Commission recommendation in this regard, which was announced earlier.

The Pay Commission has revised the Transport allowance (TPTA), which is given below:

NEW-TPTA

The existing Transport allowance table for A1/A cities and other places is under:

Existing-TPTA

The Pay Commission made report, assuming that the rate of Dearness Allowance 125 percent at the time of implementation of the pay commission recommendation, i.e. on January 1 next year.
Accordingly, the employees will not get any hike in Transport allowance on the time of implementation of the pay commission recommendation as the existing Transport allowance figure automatically reached the Pay Commission revised Transport allowance figure after adding 125 percent DA.

“In partial modification, the committee has further decided that the current HRA slab, which is 30 per cent of basic pay, for metros would continue,” according to the sources.

However, the pay commission had recommended reducing the house rent allowance (HRA) to 24 per cent of basic pay as against the 30 per cent of basic pay employees were drawing under the Sixth Pay Commission.

The government has given higher basic pay with arrears, effective from January 1, 2016 in August 2016 to its employees on the recommendations of the 7th pay commission but referred hike in allowances to the Committee on Allowances.

Usually, once the recommendations of the pay commission are approved, the increase in basic pay is followed by an increase in allowances.

The hike in allowances, most probably to implement from the month of April and the Finance Minister Arun Jaitley may announce it after ending the model code of conduct on March 8.

TST

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Bureaucracy delaying higher allowances implementation

Bureaucracy delaying higher allowances implementation

New Delhi: Complicated bureaucracy is delaying the implementation of the higher allowances under 7th Pay Commission recommendations, and it is now expected to start in three to four months, one leader of an employees’ union was quoted as saying.

The government has given higher basic pay with arrears, effective from January 1, 2016 in August 2016 to its employees on the recommendations of the 7th pay commission but referred hike in allowances other than dearness allowance to the ‘Committee on Allowances’ headed by the Finance Secretary Ashok Lavasa for examination in July, 2016 as the 7th pay commission had recommended for abolishing 51 allowances and subsuming 37 others out of 196 allowances.

The government has given the committee four months to submit the report but an extension was also given up to February 22, 2017 to submit its report on higher allowances. In October last year, Finance Secretary Ashok Lavasa had said the committee was ready with its report.

Usually, once the recommendations of the pay commission are approved, the increase in basic pay is followed by an increase in allowances.

The government earlier said that the cash crunch was the reason behind the delay in announcing higher allowances.

The announcement of assembly elections in five states has also given an excuse for the government as it cannot announce allowances hikes till the model code of conduct is in place up to March 8.

The higher House Rent Allowance (HRA) segment is of great benefit to central government employees in the allowances.This segment will more than double, with the increases ranging between 106% and 122% as recommended the 7th Pay Commission. So, the central government employees have a keen interest in higher House Rent Allowance (HRA).

The pay commission has recommended the rates HRA for these cities to 24%, 16% and 8% respectively of new pay matrix.

The Commission also recommended, that the rate of HRA will be revised to 27 percent, 18 percent and 9 percent respectively when DA crosses 50 percent, and further revised to 30 percent, 20 percent and 10 percent when DA crosses 100 percent.

The existing rates of HRA for Class X, Y and Z cities and towns are 30%, 20% and 10% of Basic pay (old pay in the pay band plus grade pay) are now paid to the central government employees according to the 6th Pay Commission recommendations until issuing of higher allowances notification.

The top bureaucrats living government bungalows and plush flats in the posh East Moti Bagh area in New Delhi. So, they don’t take House Rent Allowance (HRA).

‘The top bureaucrats houses have modular kitchens, hot and cold water supply like in hotels, solar lighting, a club with a swimming pool and tennis courts, jogging tracks, terrace gardens, a shopping complex, a primary school and banking facilities,’ an official at the urban development ministry said. They are also taking benefit of yoga and health centre.

The luxury apartments becoming popular among the bureaucrats. The secretaries of the central departments have been allotted a plot size of 8,250 sq ft, a plint area of 1,970 sq ft, eight bedrooms, four servant quarters, two garages, front and rear lawns. Hence, they are not interested to hike allowances and the higher allowances announcement dips in face of bureaucratic apathy.

However, we hope, the Finance Minister Arun Jaitley may announce the higher allowances, most probably after ending the model code of conduct on March 8, which will cover 48 lakh central government employees and 52 lakh pensioners.

Be the first to comment - What do you think?  Posted by admin - February 11, 2017 at 4:26 pm

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