4% DA hike to Central Government employees is confirmed as from 1 January 2020

4% DA hike to Central Government employees is confirmed as from 1 January 2020

The Consumer Price Index for Industrial Workers, according to a press release issued by the Labor Bureau, increased by 2 points and pegged at 330
 
Now there is an average of 12 months of AICPIN available for calculating the DA from January 2020.

As per the approved Dearness Allowance rate calculation formula, the DA will be increased by 4 per cent from January 1st, 2020.

For impact from 1.1.2020, the DA rate will increase from the current 17 per cent to 21 per cent. For this DA hike the Central Government must grant its approval. In the second week of March 2020, the Union cabinet must approve the plan to increase DA from 1 January 2020

Check the Expected DA 2020 for Central Government Employees

The Ministry of Finance will subsequently issue an order for payment DA to central government employees and DR to pensioners with effect from 1.1.2020

It appears that AICPIN does not have anything to do with the January 2020 rate DA. But it will provide momentum to the July 2020 Expected DA to reach a level that will affect DA indexed Allowances.

Check the Press Release

7th Pay Commission latest news today: Announcement on Dearness Allowance hike & Ad-hoc Bonus? Modi Cabinet meeting scheduled today

Announcement of DA Hike and Ad-hoc Bonus for Central Government Employees?

7th Pay Commission latest news today: Announcement on Dearness Allowance hike & Ad-hoc Bonus? Modi Cabinet meeting scheduled today

Also check: Grant of Dearness Allowance to Central Government employees – Revised Rates effective from 1.1.2019

7th Pay Commission latest news today: Around 1.1 crore central government employees are eagerly waiting for the announcement of an increase in their Dearness Allowance (DA). The festive season has virtually started and Dussehra, Diwali and other big holy days are just around the corner. This is the time when everyone celebrates these festivals with pomp and splendour and that includes central government employees too. For this money is required and so far the extra amount from DA has not reached them. They have been waiting for the good news announcing the granting of DA. However, this has not happened so far and today Modi Cabinet meeting is scheduled today will start at evening 06.30 PM of 03rd Oct, 2019.

They were hopeful that it will be announced in last month September 2019, but due to PM’s foreign visit the announcement get delayed. The announcement of the DA hike is made by government usually by mid-September. It is October now and the same has not happened. Now the the same should have happened today in Cabinet meeting scheduled today evening around 6.30 pm as per news sources. and the chances of the 7th pay commission (7th CPC) linked DA hike and Ad-hoc Bonus are to be considered.

Also check: 7th CPC DA Hike will announce today for central government employees and pensioners

Expectations are that the government may announce it by Dussehra in October. The government is expected to announce DA hike of 5% and this translates from between Rs 900 to Rs 12,500 per month increase in salary, depending on the pay levels. The 5% increase in DA of central government employees, if it happens, will be the highest in 3 years. The reason for this is the rise in inflation in AICPIN during January to June 2019. Inflation in the AICPI figures for January to June has risen by more than 5%.

Ad-hoc Bonus for Central Government Employees is also on the cards as PL Bonus to Railways and Defence Employees have already approved. Now, it will also be announced on today and will be great festival gift from the Modi Cabinet to all non-gazetted central government employees.

Will Central Government Employees get 17 percent DA in the salary of September 2019?

Will Central Government Employees get 17 percent DA in the salary of September 2019?

Central government is likely to approve a hike in dearness allowance (DA) to 17 per cent from the existing 12 per cent, benefiting around 30 lakh Centre’s employees and its 50 lakh pensioners including dependents.

“The five per cent DA raise has been confirmed with the release of June 2019 All India Consumer Price Index (AICPI). The AICPI for June 2019 is 316, which is two points more that May 2019 AICPI,” an official said.

He said the Finance Ministry will now put a Cabinet proposal for approval of 5 per cent DA hike from July 1 this year as the revised Consumer Price Index-Industrial Workers data for June was released by Labour Ministry on July 31.

With increase in DA, the pensioners will also gain as the benefit provided to them as dearness relief will be hiked to 17 per cent of basic pension.

The government had increased DA to 12 per cent from 9 per cent with effect from January 1, 2019, on February 27 on the basis of agreed formula for revision of the Dearness allowance.

The five per cent hike in DA would be the biggest since the implementation of the 7th pay commission recommendations in 2016.

The DA announcement may come this month and the government may not delay the DA announcement for the festival season beginning with Dussehra.

The central government employees will get 17 percent DA in the salary of September 2019.

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.

7% DA for Tamilnadu State Government Employees from July 2016

Tamil Nadu CM announces seven per cent DA hike for govt employees

Chennai: Tamil Nadu Chief Minister O Panneerselvam today announced a Dearness Allowance hike of seven percent for government employees and pensioners effective July one this year.

Increasing the DA to 132 per cent from the present 125 per cent would benefit 18 lakh government employees, pensioners and family pensioners and it would entail an approximate additional annual burden of Rs.1,833.33 crore to the state, he said in release here.

The increase in DA for the July 1 to November 30 period will be remitted in lumpsum in the bank accounts of employees, he said, adding the hike from the current month will be paid together with their salaries.

Following the hike in DA for Union government employees, Panneerselvam said government employees would get a hike ranging between Rs 427 and Rs 5,390, pensioners and family pensioners would get an increase from Rs 214 to Rs.2,695.

He said the hike would also be applicable to municipal bodies, those working in State-aided educational institutions, teachers, village assistants, Anganwadi and nutritional meal programme staffers.

On the hike, he said he was following the footsteps of former Chief Minister Jayalalithaa in ensuring the welfare of government employees as they delivered the State’s welfare schemes to the people

PTI

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 hiked by 6%, to benefit 7 lakh Odisha government employees, pensioners

DA hiked by 6%, to benefit 7 lakh Odisha government employees, pensioners

Bhubaneswar: The Odisha government Saturday (30-4-2016) hiked Dearness Allowance (DA) by 6 per cent, benefiting over 7 lakh state government employees and pensioners, which would cost the exchequer an additional Rs 676.90 crore annually.

The DA, which will benefit over four lakh Odisha government employees and three lakh pensioners, will go up from the existing 119 per cent to 125 per cent, which would come into force with retrospective effect from January 1, 2016

Dearness allowance is paid as a portion of basic pay of employees to neutralise the impact of inflation. Pensioners get dearness relief.

The state government revises DA twice in a year on the basis of one year average of retail inflation for industrial workers as per a pre-determined formula.

The DA was increased following approval by Chief Minister Naveen Patnaik, Odisha Finance Minister Pradip Amat said.

While total annual implication on enhancement of DA and DR comes to Rs 676.90 crore, the additional requirement of fund during 2016-17 towards the hike with effect from January 1, this year, including arrears, comes to Rs 789.72 crore, he said.

Central Government Employees get 6% DA hike from January 1

Central Government Employees get 6% DA hike from January 1

Dearness allowance for central government employees has been hiked to 125 per cent of basic pay, up by 6 percentage points, with effect from January 1, 2016, the Finance Ministry said today.

Dearness Allowance payable to central government employees shall be enhanced from existing rate of 119 per cent to 125 per cent from January 1,2016,” according to a Finance Ministry office memorandum bringing into effect the DA hike announced last month.

The decision to release an additional instalment of DA to central government employees and Dearness Relief (DR) to Pensioners from January 1, 2016, was taken by Union Cabinet on March 23.

The combined impact on the exchequer on account of both DA and Dearness Relief would be of Rs 6,796.50 crore per annum and Rs 7,929.24 crore respectively, in 2016-17 (for a period of 14 months from January, 2016 to February, 2017).

The DA will benefit 50 lakh central government employees and 58 lakh pensioners.

Dearness Allowance is paid as a portion of basic pay of employees to neutralise the impact of inflation. Pensioners get Dearness Relief.

The Centre revises DA twice a year on the basis of one year average of retail inflation for industrial workers as per a pre-determined formula.

In September last year, DA was increased to 119 per cent from 113 per cent with effect from July 1, 2015. In April last year, the government had hiked DA by 6 percentage points to 113 per cent of the basic pay with effect from January 1, 2015.

PTI