Increase / decrease in DA / DR for Central Government employees – 7th CPC Expected DA/DR from January, 2020

7th CPC Expected DA/DR from January, 2020

If it's a fact that Central Govt has a Daily Allowance (DA) and a Dearness Relief (DR). Employees and pensioners are due as from 4 January 2020

 

Government of India
Ministry of Finance
Department of Expenditure

Rajya Sabha

Unstarred Question No. 1336

To be answered on
Tuesday, 3 March, 2020
Falguna 13, 1941(Saka)

Increase / decrease in DA / DR

1336: Shri Majeed Memon
Will the Minister of Finance be pleased to state:

(a) Whether it is a fact that Daily Allowance (DA) and Dearness Relief (DR) for Central Govt. employees and pensioners have become due with effect from 4th January, 2020.
(b) If so, the details thereof
(c) Whether DA/DR is based on rise in inflation and increase in prices of essential commodities; and
(d) If so, whether the increase in DA allowance is in line with increase in price of essential items and if not, the reason therefore?

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

Answer

Minister of State in the Ministry of Finance :
(Shri Anurag Thakur)

(a) & (b): Yes Sir. Dearness Allowance and Dearness Relief are granted to serving employees and pensioners of the Central Government respectively each year with effect from 1st January and 1st July and normally paid in the month of March and September respectively.

(c) & (d): Yes Sir. The level of inflation for the purpose of DA/DR to Central Government employees/pensioners is calculated on the basis of All India Consumer Price Index for Industrial Workers which is issued by Labour Bureau, Shimla

DA Merger News Central Government Employees and Pensioners

DA Merger News Central Government Employees and Pensioners

Compiling of Question and Answers about the news of “50% DA MERGER” to Central Government Employees and Pensioners – Hon’ble Parliament Members asked frequently about the expectation of 50 per cent Dearness allowance merging with basic pay to all CG Staff and Pensioners in Parliament (both Lok Sabha and Rajya Sabha) and the concerned minister has replied to these questions, we are compiling here for your information…


LOK SABHA
UNSTARRED QUESTION NO 3442
ANSWERED ON 30.08.2013

Minister of State for Finance said in the Lok Sabha on 30th August 2013 that “some Central Government Employees Associations have been demanding for the merger of 50% Dearness Allowance with Basic Pay and for constitution of 7th Pay Commission. The 6th Central Pay Commission had recommended not to merge Dearness Allowance with basic pay at any stage. Government accepted this recommendation vide its Resolution dated 29.08.2008. The recommendations of the previous Pay Commission i.e. 6th Central Pay Commission, were given effect from 1.1.2006. The setting up of next Pay Commission is considered normally after a gap of 10 years between two successive Pay Commissions. Hence the question of delay does not arise.

Dearness Allowance to Central Government employees is revised twice a year w.e.f. 1st January and 1st July, calculated on the basis of percentage increase in All India Consumer Price Index for Industrial workers”.


RAJYA SABHA
UNSTARRED QUESTION NO-4384
ANSWERED ON-07.05.2013

The below information was submitted by the Minister of State for Finance Shri Namo Narian Meena in Rajya Sabha on 7th May 2013 that the 5th Pay Commission had recommended that Dearness Allowance should be converted into Dearness Pay each time the Consumer Price Index increases by 50% over the base index used by the last pay Commission. Accordingly the Government issued orders on 27.02.2004 for merging of 50% of the DA with the basic pay w.e.f.01.04.2004.

The 6th Central Pay Commission had recommended not to merge Dearness Allowance with basic pay at any stage. Government has accepted this recommendation vide Resolution dated 29.08.2008. Hence the question to merge DA with basic pay does not arise. However, the rate of DA is being revised at periodic intervals.


RAJYA SABHA
UNSTARRED QUESTION NO-4385
ANSWERED ON-07.05.2013

Minister of State for Finance said in the Rajya Sabha on 7th May 2013, the 6th Central Pay Commission had recommended not to merge Dearness Allowance with basic pay at any stage. Government has accepted this recommendation vide Resolution dated 29.08.2008. There is no time frame/date prescribed for announcement of Dearness Allowance. The revision of rate of Dearness Allowance is announced by the Government as and when approved by the Cabinet.


RAJYA SABHA
UNSTARRED QUESTION NO-3139
ANSWERED ON-23.04.2013

There is no fact in dearness allowance is merging with basic pay after it crossed 50% level, the Minister of State for Finance Shri Namo Narain Meena said in the Rajya Sabha on 23rd April, 2013 and he also said that the 6th Central Pay Commission has recommended not to merge dearness allowance with basic pay at any stage. Government has accepted this recommendation vide Resolution dated 29.08.2008.


LOK SABHA
UNSTARRED QUESTION NO 5245
ANSWERED ON 26.04.2013

Shri Namo Narain Meena said in the Parliament on 26th April 2013, there is no proposal to merge 50% of Dearness allowance with basic pay and he also said that the 6th Central Pay Commission had recommended not to merge dearness allowance with basic pay at any stage. Government has accepted this recommendation vide Resolution dated 29.08.2008.


RAJYA SABHA
UNSTARRED QUESTION NO-1591
ANSWERED ON-12.03.2013

While answering to a question about the overdue of dearness allowance with pay and pension in the Parliament on 12th March, 2013, shri Namo Narain Meena said that no overdue and the 6th Central Pay Commission has recommended not to merge dearness allowance with basic pay at any stage. Government has accepted this recommendation vide Government of India Resolution dated 29.08.2008.


LOK SABHA
UNSTARRED QUESTION NO 3632
ANSWERED ON 14.12.2012

The below information was submitted as written reply for a question in Parliament on 14th December 2013 as follows…

A number of representations have been received from Associations/Organizations of Central Government Employees/Pensioners and individuals demanding merger of 50% of Dearness Allowance/ Dearness Relief with basic pay/pension respectively. The demand has been considered by the Government and not agreed to since the 6th Central Pay Commission has not recommended as such.

The 6th Central Pay Commission did not recommend merger of dearness allowance with Basic Pay at any stage. Government accepted this recommendation vide Government of India Resolution dated 29.08.2008.

7th CPC DA Calculation: What are the 7th CPC’s Recommendations Regarding Dearness Allowance?

7th CPC DA Calculation: What are the 7th CPC’s Recommendations Regarding Dearness Allowance?

Dearness Allowance is one of the important issues that the Pay Commission deals with.

The calculation method that was recommended by the 6th Pay Commission was radically different from the ones suggested by all the previous Pay Commissions.

Dearness Allowance, which was increasing by 1 or 2% until the 5th Pay Commission suddenly shot up to double-digit numbers. Until the 5th CPC, the All India Consumer Price Index Number for Industrial Workers 1982 = 100 was used for calculating dearness allowance. From the 6th Pay Commission onwards, CPI (IW) 2001 = 100 was used for calculating the DA.

There was another crucial change that the 6th CPC made. it recommended that the Reference Base Index be changed from 306.33. As a result, 115.76 became the new Reference Base Index from 01.01.2006 onwards.

The report says…

The Commission assuming that the rate of Dearness Allowance would be 125 percent at the time of implementation of the new pay.

The Dearness Allowance (DA) is paid to Central Government employees to adjust the cost of living and to protect their Basic Pay from erosion in the real value on account of inflation. Presently, DA is based on the All India Consumer Price Index (Industrial Workers).

The JCM-Staff Side has suggested that the existing formula for the calculation of DA may continue.


Analysis and Recommendations

The VI CPC had recommended that the National Statistical Commission may be asked to explore the possibility of a specific survey covering government employees exclusively, so as to construct a consumption basked representative of government employees and formulate a separate index. This has, however, not been done.

Keeping in mind that the present formulation of DA has worked well over the years, and there are no demands for its alteration, the Commission recommends continuance of the existing formula and methodology for calculating the Dearness Allowance.

The prices of all items have been sourced from Labor Bureau, Shimla. These prices are used in the calculation of the CPI (IW) and subsequently the calculation of Dearness Allowance. In the current exercise the prices of all items are for the period July 2014-June 2015 and have been used in the calculation of DA at 119 percent operative from 01.07.2015.

7th Pay Commission DA Calculation – Jan 2016 AICPIN starts with new episode of ‘Expected DA July 2016

7th Pay Commission DA Calculation – Jan 2016 AICPIN starts with new episode of ‘Expected DA July 2016’

“The first AICPIN points of 2016 will be released tomorrow”

The Dearness Allowance given to Central Government employees and Pensioners will henceforth be calculated on the basis of the 7th Pay Commission recommendations from 1.1.2016.(Expects its recommendations to be implemented by the Government)

The first All India Consumer Price Index – CPI (IW) Base Year 2001=100, used for calculating the Dearness Allowance will be announced tomorrow by the Central Government.

The current DA, according to the 6th Pay Commission, began at zero on 01.01.2006, and ended at 125%. It will restart again at zero from 01.01.2016 onwards.

There is no Dearness Allowance for the six months from January to June 2016. 

From July 2016 onwards, the new and first Dearness Allowance will be announced based on the recommendations of the 7th Pay Commission. In other words, the Dearness Allowance for the six months between July and December 2016 will be based on the fluctuations in the prices of essential commodities, called the AICPIN points, between January and June 2016.

The 7th Pay Commission has not prescribed any dramatic changes in the method of calculation of the Dearness Allowance. Instead, the previous method is all set to continue.

But, final announcements will be made in this regard only after the Central Government makes its decisions clear.

6TH CPC DA TABLE