The World Opinion

Tag: Dearness Allowance

  • 7th Pay Commission: Will Centre Announce Dearness Allowance Increase For Govt Employees Today? All Eyes On Union Cabinet Meeting | Personal Finance News

    New Delhi: The central government is likely to bring good news for its employees and pensioners with an expected hike in Dearness Allowance (DA) and Dearness Relief (DR) after the upcoming Cabinet meeting on Wednesday, according to reports. While DA benefits are for serving employees, pensioners receive DR.  These allowances are typically revised twice a year, in January and July, with announcements made later.

    In March, the government announced a 4 per cent increase in DA, effective from January 2024. Currently, both central government employees and pensioners receive 50 per cent of their basic salary or pension as DA and DR, respectively.

    The Union Cabinet, led by Prime Minister Narendra Modi is expected to meet today where a decision on further increasing the DA may be made, though no official confirmation has been given yet. If the DA and DR hike is announced, it will benefit around 1.15 crore central government employees and pensioners. It will also offer much-needed financial relief as living costs continue to rise.

    What is DA?

    Dearness Allowance (DA) is a portion of an employee’s basic salary which is provided to help offset the impact of inflation. It’s adjusted every six months to keep up with the rising cost of living, giving government employees some relief from increasing prices.

    DA for central government employees is calculated as follows:

    Dearness Allowance (DA) hikes are based on the average All India Consumer Price Index (CPI-IW) for industrial workers, which reflects changes in the cost of living. Typically, these revisions happen twice a year, on January 1 and July 1.

    The DA for central government employees is calculated using this formula: DA% = [(12-month average of AICPI (Base Year 2001 = 100) – 115.76) / 115.76] x 100.

    This calculation helps determine how much of a DA increase employees will receive, based on inflation trends.

  • 7th Pay Commission DA Hike Update: Will DA Drop To Zero From July 1 Or Will There Be A Change? Here’s All You Want To Know | Personal Finance News

    New Delhi: There has been a long-standing discussion that at 50 percent the Dearness Allowance (DA) will drop to zero. This was scheduled to happen on July 1, 2024. The basis of this discussion was the previous parlance or practice, since there used to be automatic merger of DA and DR into basic salary as both the allowances reached 50 percent mark.

    A Business Line report had also confirmed a few months ago that there was no recommendation under the 7th Pay Commission to merge DA with basic pay at any stage. Business Line further wrote, consequent to the absence of any particular mentioning of auto merging of DA with basic pay, the next installment of DA/DR ‘will not start from ‘Zero’ but will continue after 50 say 52 or 53 or 54 percent.”

    For the central government employees, however, there seems to be no good news. Beginning January 2024, a 50 percent dearness allowance is being provided and it has not been reduced to zero. It seems that the calculations will continue to increase in size without ever coming close to zero.

    The discussion on DA dropping to zero was started because of the revision in HRA. The 7th Pay Commission consolidated the dearness allowance. There isn’t a rule that says this will still be followed, though. There was a provision that HRA had to be evaluated when DA reached 50 percent. At that moment, it was also indicated that the dearness allowance would be removed. But, there is no official statement on this from the government.


    Will the DA be zero or not?

    Employees’ dearness allowance won’t be zero and the DA hike calculation will continue, since there is no rule regarding this. The last time this was done was when the base year was changed. Changing the base year is no longer necessary, as a result of which, central employees’ DA will rise at a rate of 50 percent.

    DA will increase less this year?

    The amount of dearness allowance that employees will receive starting July 2024 is determined by the AICPI-IW index figures between January and June 2024. The figures for January, February, March, April, and May have been received thus far. With the index value of 138.9 points in January, the dearness allowance went up to 50.84 percent. The index had values of 139.2 in February, 138.9 in March, 139.4 in April, and 139.9 in May. According to this trend, the dearness allowance has increased to 51.44 percent in February, 51.95 percent in March, 52.43 percent in April, and 52.91 percent by May.

    How much of the DA can be raised?

    Experts estimate that the DA can only rise by 3%. If this occurs, the employees’ DA will rise to 53 percent. There is no way for zero to exist. The dearness allowance is calculated using the AICPI index. The index’s inflation data, gathered from various industries, indicates the rate at which the employees’ allowance needs to rise with inflation.

    When will DA be announced?

    The central government employees receive notice of their DA by September or October. It will, however, only be put into effect from July 2024. Payment for the intervening months will come as arrears. The DA will be determined by AICPI data from January to June 2024 under the 7th Pay Commission.

  • 7th Pay Commission: Central Govt Revises Employees’ Allowances — Read In Detail | Personal Finance News

    New Delhi: It is good news for you if you are a central government employee and a pensioner. The union government has announced revisions to six key allowances under the 7th Pay Commission dispensation. The Department of Personnel and Training (DoPT) released an Office Memorandum (OM) on April 2, 2024 regarding the revisions. 

    Here is the breakdown of the revisions made by the department. (Also Read: Veg Thali Becomes Expensive In March, Non-Veg Cheaper: Check Rates)

    Child Education Allowance

    Child Education Allowance has been revised, now standing at 25 percent of the allowance when the employee’s DA reaches 50 percent. The maximum allowance for Child Education/Hostel Subsidy applies to two children, with a hostel subsidy amounting to Rs 6,750 per month. (Also Read: China May Use AI Content To Influence Lok Sabha Polls, Warns Microsoft Report)

    In cases of disabled children, the allowance is doubled.

    Risk Allowance

    For employees engaged in hazardous duties, the Risk Allowance has been revised. This allowance, provided to mitigate health risks associated with certain job roles, is not considered as part of the employee’s regular pay.

    Night Duty Allowance

    The 7th Pay Commission recommendations have updated the Night Duty Allowance (NDA). Employees eligible for NDA must have a basic salary of Rs 43,600 per month.

    The calculation of NDA is based on the basic pay and dearness allowance rates specified by the Commission.

    Special Allowance

    Special Allowance for Parliament Assistants has been increased by 50 percent for those fully engaged in Parliament duties during its sessions. The revised rates apply for each calendar month, with adjustments made for shorter sessions.

    Over Time Allowance

    Ministries/Departments are tasked with compiling rosters of ‘Operational Staff’ eligible for Overtime Allowance, without any upward adjustment in rates. Biometric attendance may be used to streamline procedures and ensure transparency in overtime work scheduling.

    Special Allowance For Women With Disabilities

    To support female employees with disabilities, especially those with young children or children with disabilities, a special allowance of Rs 3,000 per month will be provided. This allowance will be disbursed from the birth of the child until the child reaches two years of age.

  • Good News For Central Government Employees; Union Cabinet Approves 4% DA Hike

    The hike in DA aims to provide relief to government employees and pensioners.

  • Cupboard approves DA hike by means of 4 p.c

    Through IANS

    NEW DELHI: In a pageant bonanza for lakhs of Central govt workers and pensioners, the Union Cupboard on Thursday gave its clearance for the discharge of an extra installment of Dearness Allowance and Dearness Reduction at 4 p.c.

    This could be due from July 1, 2022.

    A complete burden of Rs 12,852 crore can be borne by means of the exchequer against fee of those allowances for the present fiscal, reputable assets mentioned.

    From July 1, 2022, until March 31, 2023, a complete of Rs 8,568 crore can be spent on it. DA hike might be advisable for over 50 lakh Central govt workers and 62 lakh pensioners.

    With this, the DA has been greater from 34 p.c to 38 p.c for all of the workers.

    NEW DELHI: In a pageant bonanza for lakhs of Central govt workers and pensioners, the Union Cupboard on Thursday gave its clearance for the discharge of an extra installment of Dearness Allowance and Dearness Reduction at 4 p.c.

    This could be due from July 1, 2022.

    A complete burden of Rs 12,852 crore can be borne by means of the exchequer against fee of those allowances for the present fiscal, reputable assets mentioned.

    From July 1, 2022, until March 31, 2023, a complete of Rs 8,568 crore can be spent on it. DA hike might be advisable for over 50 lakh Central govt workers and 62 lakh pensioners.

    With this, the DA has been greater from 34 p.c to 38 p.c for all of the workers.

  • Explainer: Bat bat of the federal government staff of UP, know the way a lot wage will build up now as in comparison to previous

    Lucknow: In regards to the emerging inflation, the Yogi executive has given a large reward to the workers and pensioners of Uttar Pradesh. Govt staff had been looking forward to this reward for a very long time. There are greater than 16 lakh executive staff, lecturers in UP, whilst there are 11.52 lakh pensioners who gets direct advantages. There’s a giant aid for the folk doing executive jobs within the UP executive. Govt staff were difficult an build up in DA for a very long time. Now the query can be for your thoughts, how a lot will the wage build up and what sort of would be the receive advantages.

    If truth be told, sooner than the Yogi executive, the central executive had additionally determined in March to offer DA and DR (Dearness Allowance) to its staff and pensioners on the charge of 34 p.c as an alternative of 31 from January 1, 2022. Now after the verdict of the UP executive, greater than 16 lakh state staff were given a large aid.

    What number of months arrears and from when benefit?
    After this announcement of Yogi executive, Dearness Allowance (DA) and Dearness Reduction (DR) of UP executive staff and pensioners were greater with impact from January 1, 2022, so everybody can even get arrears. Consistent with the order, arrears for a complete of six months from January to June can even are available in August along side the greater wage and pension of July. Previous, UP executive staff had been being given dearness allowance on the charge of 31 p.c.

    What’s DA and DR
    This build up in Dearness Allowance (DA) and Dearness Reduction (DR) of UP executive staff and pensioners can be regarded as efficient from January 1, 2022. This is, the federal government jobs of UP gets the advantage of arrears.

    July’s greater DA quantity in GPF
    State staff can be paid money DA on the charge of 34 consistent with cent in August along side the wage of July. From January 1 to June 30, the quantity of greater DA can be deposited within the Provident Fund Account (GPF) of the workers. The arrear quantity can be credited to the GPF account of the workers until July 31, 2023 and can’t be withdrawn sooner than this date aside from in instances of ultimate withdrawal.

    DA charge equivalent to that of central executive
    Now after the newest determination, the dearness allowance to the state staff has greater to 34%. Previous, in March, the central executive had additionally greater dearness allowance by way of 3% from January 1, 2022 and from 31 to 34%.

    Dearness Allowance hiked by way of 3%
    After the verdict of the Central Govt to extend the dearness allowance, the Finance Division of UP become energetic. It was once being speculated that the UP executive can announce DA for the workers anytime. Now after expanding the dearness allowance of 3 p.c of the state executive staff and pensioners, the extra burden of a number of crores will build up yearly at the state executive.

    220 crores will build up the load
    Consistent with the ideas, at the fee of DA and DR to the state staff at an greater charge of 3 p.c, an extra burden of Rs 220 crore will come at the Yogi executive each month.

  • Cupboard hikes dearness allowance by means of 3 in step with cent for central govt staff

    Via PTI

    NEW DELHI: The Union Cupboard on Wednesday hiked Dearness Allowance (DA) and Dearness Reduction (DR) by means of 3 in step with cent to 34 in step with cent to profit over 1.16 crore central govt staff and pensioners.

    The extra instalment shall be efficient from January 1, 2022, mentioned an respectable free up after the Cupboard assembly.

    “This building up is in keeping with the authorised system, which is according to the suggestions of the seventh Central Pay Fee,” it mentioned.

    The mixed have an effect on at the exchequer because of each Dearness Allowance and Dearness Reduction shall be Rs 9,544.50 crore in step with annum.

    This may occasionally get advantages about 47.68 lakh central govt staff and 68.62 lakh pensioners, the discharge mentioned.