Central Government has a proposal to Pay 1% DA from July 2016 as an interim Measure

Central Government has a proposal to Pay 1% DA from July 2016 as an interim Measure

The Sources Close to the Ministry of finance informed that there is proposal to Pay 1% DA from July as an interim Measure.It is said that the Central Government has not yet decided about the DA rates in Revised Pay scale.

Sources close to Finance Ministry told that the initial installment of DA to central government employees on the revised pay structure w.e.f 1.7.2016 is under consideration. Mean time there is a proposal to pay the DA from July 2016 at the rate of 1% to all CG Staffs. It will be a shocking news for CG Staff, since they are already expecting 2 to 3% DA from July 2016.

PRU is asked to submit Financial Implication of 1% DA

But the fact is the Department of Expenditure has directed the PRU of the Finance Ministry to furnish the details of additional Financial Implications for 1% increase of DA with effect from 1.7.2016 on the revised Pay Structure.

Further the Pay Research Unit has been requested to furnish financial implications for the Period of July 2016 to February 2017 on account of granting 1% DA from July 2016 to all central government employees including Armed Forces and UT Employees.

According to the above information, it is believed that announcement of 1% DA for July installment may be made any time soon.

Source: http://govtstaffnews.in/

Dearness Allowance Calculation in 7th CPC Gazette Notification

Dearness Allowance Calculation in 7th CPC Gazette Notification

The recommendations on Allowances (except Dearness Allowance) will be referred to a Committee comprising Finance Secretary and Secretary (Expenditure) as Chairman and Secretaries of Home Affairs, Defence, Health and Family Welfare, Personnel and Training, Posts and Chairman, Railway Board as Members. The Committee will submit its report within a period of four months. Till a final decision on Allowances is taken based on the recommendations of this Committee, all Allowances will continue to be paid at existing rates in existing pay structure, as if the pay had not been revised with effect from 1st day of January, 2016.

V. Dearness Allowance:

Sl.No	Recommendation of the seventh Central Pay Commission	Decision of the Government
1	Existing formula and methodology for calculating Dearness Allowance to continue (Para 8.17.37 of the Report)	Accepted. The reference base for calculation of Dearness Allowance after coming into force of the revised Pay structure shall undergo change accordingly and will be linked to the average index as on 01.01.2016.

Authority: http://egazette.nic.in/WriteReadData/2016/170924.pdf

6th Pay Commission Dearness Allowance ends with 6% hike at 125%

6th Pay Commission Dearness Allowance ends with 6% hike at 125%

Cabinet approves 6 percent Dearness Allowance hike for Central Government employees

“In the 7th Pay Commission report, submitted to the government on 19.11.2015, it was mentioned that the DA is assumed to be 125 percent as on 1 January, 2016, the day from which the
Commission expects its recommendations to be implemented by the government. As calculated by the 7th Pay Commission, a six percent Dearness Allowance hike is being given to the Central Government employees.”

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).

On 23.03.2016, Wednesday, the Centre decided to give a Dearness Allowance of 6 percent to the Central Government employees in order to enable them to manage the price rise and inflation.

On the occasion of Holi, a special cabinet meeting, under the leadership of Prime Minister Narendra Modi, was held in New Delhi on 23rd March 2016. At the end of the meeting, Mr. Ravishankar Prasad, the Minister of Communications and Information Technology, spoke to the reporters. He said, “The cabinet has decided to issue a Dearness Allowance of six percent to the Central Government employees and pensioners.”

The Dearness Allowance is expected to be calculated from January 1, 2016 onwards. This increases the total Dearness Allowance from 119 percent to 125 percent. More than 50 lakh Central Government employees and 58 lakh pensioners will benefit from this. The government will incur an additional financial burden of Rs.14,725 crores. Dearness Allowance is issued twice a year, based on inflation. The previous Dearness Allowance hike, of six percent, was issued in the month of September 2015, and had a retrospective effect from July 2015 onwards.

This is the last and final instalment of Dearness Allowance calculated by the recommendations of 6th Pay Commission. And, after implementation of 7th Pay Commission the new and first Dearness allowance from 1.7.2016 will be approved by the Cabinet in the middle of September 2016.

Will Central Government Employees, get 6% dearness allowance

Will Central Government Employees, get 6% dearness allowance

 Good days will come for Central Government Employees, get 6% dearness allowance

     Modi Government is set to big announcement on Budget in view of 7th Pay Commission

It is certain that 6% increase in DA is guaranteed. Here it is necessary to mention that the DA is increased twice in a year. Central government employees are paid from the first of January and July.  As we're told that the DA is 6 percent of total will be 113%. But it is also a provision that if the DA crossed 100 mark will be merged in the basic salary. The employee unions are pressing hard for the merger of DA in the basic pay. But neither the government nor the Seventh Pay Commission is committed at this point. The government has also not in mood to merge the DA in the basic pay. If that happens, this will be bad news for the employees.


Union workers are now engaged on the expected budget has to be presented in February. Employees are hoping that the finance minister will must bring good day for them. On the other side the employee organizations has started to pressure on government to merge the DA in basic pay. The employees union are also pressing for provision of fund for implementation of Seventh Pay Commission in the budget. Trade union leaders are confident that a big announcement can be in budget .