Cabinet approves 5% additional DA/DR due July, 2019

09 Oct, 2019

The Union Cabinet Chaired by Prime Minister Narendra Modi today approved to release an additional instalment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners w.e.f. 01.07.2019 representing an increase of 5% over the existing rate of 12% 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. 15909.35 crore per annum and Rs. 10606.20 crore in the financial year 2019-20 (for a period of 08 months from July, 2019 to February, 2020). This will benefit about 49.93 lakh Central Government employees and 65.26 lakh pensioners.

The additional financial implication on account of this increase in Dearness Allowance is estimated at Rs 8590.20 Crore per year; and Rs 5726.80 Crore in the current Financial Year of 2019-20 (for 8 months from July 2019 to February 2020).

The additional financial implication on account of the Dearness Relief to pensioners is estimated to be Rs 7319.15 Crore per annum and Rs 4870 Crore in the current FY.

Dear Allowance/Dearness Relief is paid to Central Government employees/pensioners to adjust the cost of living and to protect their basic pay/pension from erosion in the real value. Dear Allowance/Dearness Relief is revised twice a year from 1st January and 1st July.

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DA July 2019 waiting for Central Government Employees and Pensioners

DA July 2019 waiting for Central Government Employees and Pensioners

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7th pay commission latest news: Big boost in salary! Cabinet to approve 5% per cent DA today?

7th pay commission latest news today: The long wait of over one crore central government employees as well as pensioners for increase in dearness allowance (DA) is likely to end today.

7th pay commission latest news today: The long wait of over one crore central government employees as well as pensioners for increase in dearness allowance (DA) is likely to end, as Centre is all set to give the biggest gift to them and that too today itself. If sources are to be believed, a decision to increase the dearness allowance of government employees may be taken in the meeting of the Union Cabinet slated today. However, there may be a problem. In view of assembly elections in Maharashtra and Haryana, the government would have to first get the approval of the Election Commission of India.

There are 1.1 crore employees and pensioners in the central government, and the cabinet approval will benefit them the most, because they would possibly get the maximum increase in DA by 5 percent. If the government goes ahead with this increase, the salary of these employee under the 7th Pay Commission pay scale will increase from Rs 900 to as much as Rs 12500 per month.

Harishankar Tiwari, former chairman of the AG Office Brotherhood, Prayagraj, who has been involved with computation process of DA, told Zee Business Online that AICPI figures between January and June 2019 have risen. The DA for June has been 17.09 per cent which is more than 5 per cent as compared to December.

Notably, the central government had increased the DA by 3 per cent from January 2019. HS Tiwari said that anyway, the central government has been announcing DA hike before the festival of Dussehra. Earlier, it has been announced in the month of March and September.

If this announcement is made by government, central government employees would see the biggest benefits in 3 years. Currently, the dearness allowance of central government employees stands at 12 per cent, and this has witnessed a maximum increase of 3 per cent

The calculation of DA is in fact done according to the AICPI data. This is done in the following manner.

June 2019: AICPI-316
Total 12 months: 3673 (301 + 301 + 301 + 302 + 302 + 301 + 307 + 307 + 309 + 312 + 314 + 316) / 12) - (261.4) x100 / 261.4)
Increase in DA: 17% -12% = 5%

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7th Pay Commission Latest News Today 2019: 7th CPC salary hike before Dussehra?

7th Pay Commission Latest News: The Central government employees are hoping that they would be able to avail hike in their minimum pay and fitment factor beyond the 7th Pay Commission recommendations ahead of Dussehra, following the benefits extended to different departments by the Narendra Modi government, according to media reports. The Centre recently gave a bumper hike in the salary of health services employees, who would get increased pay from Rs 4100 to Rs 5300 per month, and the benefit will be considered from July 1, 2017.

Notably, the central government employees have been demanding the hike in their basic pay Rs 18,000, since the 7th Pay Commission report was submitted, but now, reports in the media are doing the rounds that the Modi-led NDA government is likely to give attention to their long-pending demand, and these central government employees may get the pay hike before Dussehra.

According to the 7th Pay Commission recommendations, these central government employees currently get basic pay of Rs 18,000, but they have been demanding from the government should fix it at Rs 26,000, as the present pay has failed to meet their financial needs.

Along with a hike in their basic pay, the central employees have also been eagerly waiting for hike in their Dearness Allowances (DA). They are currently getting 12 per cent DA which was implemented in January 2019.

The Haryana government has announced the DA hike by 6% for its thousands of NHM employees ahead of the assembly elections. These Haryana staff will get an increased DA from 148 to 154 per cent and the same would applicable from January 1, 2019.

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7th Pay Commission Latest News Today: Big Diwali gift ordered for these 100,000 employees! Dearness Allowance hiked by whopping 5 pct; clearance awaited

7th Pay Commission Latest News Today: The Steel Authority of India Limited or SAIL, a Navratna company, management has decided to increase Dearness Allowance (DA) of its employees by 5 per cent. The public sector company management has sent a letter in this regard to the Ministry of Labour and Employment to increase the DA of its employees from October 2019. However, the 5 per cent DA hike is for the officer grade employees, lower grade employees have been recommended a DA hike of 3.2 per cent. As per the media reports, this DA hike can be implemented from October 2019.

If the Centre approves this DA hike recommendation, SAIL employees' DA would go up from 57.4 per cent to 62.4 per cent. Like public sector banks, PSU employees DA is also increased in a quarterly basis, means after a gap of three months. As per the custom, DA is hiked as per the increase in the CPI (Consumer Price Index). The DA hike is considered as a hedge against the rise in inflation in the corresponding period. If the DA hike is implemented, around 100,000 SAIL employees of both officer's grade and lower grade would be benefitted by this DA hike.

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Once, the 5 per cent DA hike is implemented, lower grade employees salary would go up by around Rs 500 to Rs 1,800. While in the officer's grade, this DA hike would lead to a rise in their salary by around Rs 5,000 per month. In the last quarter, the DA announced for the lower grade SAIL employees was 3.4 per cent while for the officer's grade SAIL employees, DA hike granted was 5.3 per cent.

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