Central Govt. employees are likely to get 6% D.A. from January 2011

Central Govt. employees are likely to get 6% D.A. from January 2011

Whatever the price of onion is, the D.A will not be as sweet as July last year.

As per the All India Index published by Labour Bureau, Govt. of India the Dearness Allowance payable to the Central Govt.staff with effect from January 2011 may not be more than 6 percent.

The figure for Nov'10 has just released and it stands at 182. The December figure is expected in the end of January. Even if the figure touches 185 in December, which is very unlikely, the D.A. hike will be limited to 6%.

Only thing to cheer is the fixed allowances such as Children Education Allowance, Conveyance Allowance for some category of staff will be 25% more as the D.A. will certainly cross the 50% mark. It may be remembered that D.A. linked allwances such as Transport Allowances will be unchanged.

Source: Pay Commission Update

All India Consumer Price Index Numbers for Industrial Workers on Base 2001=100 for the Month of November, 2010

All India Consumer Price Index Numbers for Industrial Workers on Base 2001=100 for the Month of November, 2010

All India Consumer Price Index Number for Industrial Workers (CPI-IW) on base 2001=100 for the month of November, 2010 increased by 1 point and stood at 182 (one hundred and eighty two).

During November, 2010, the index recorded an increase of 6 points each in Siliguri, Jamshedpur, Tiruchirapally and Bhilai centres, 5 points each in Giridih, Coimbatore, Mariani Jorhat, Rourkela and Selam centres, 4 points in 4 centres, 3 points in 6 centres, 2 points in 13 centres and 1 point in 17 centres. The index decreased by 4 points in Ghaziabad centre, 2 points in Agra centre, 1 point in 11 centres, while in the remaining 16 centres the index remained stationary.

The maximum increase of 6 points each in Siliguri, Jamshedpur, Tiruchirapally and Bhilai centres is mainly on account of increase in the prices of Rice, Goat Meat, Onion, Vegetable & Fruit items, Firewood, etc. The increase of 5 points each in Giridih, Coimbatore, Mariani Jorhat, Rourkela and Selam centres is due to increase in the prices of Rice, Mustard Oil, Goat Meat, Eggs (Hen), Onion, Vegetable & Fruit items etc. However, the decrease of 4 points in Ghaziabad centre is due to decrease in the prices of Arhar Dal, Vegetable items, etc. and the decrease of 2 points in Agra centre is due to decrease in the prices of Urd Dal, Moong Dal, Vegetable items, etc.

The indices in respect of the six major centres are as follows :

1. Ahmedabad - 180

2. Bangalore - 183

3. Chennai - 165

4. Delhi - 168

5. Kolkata - 177

6. Mumbai - 182

The All-India (General) point to point rate of inflation for the month of November, 2010 is 8.33% as compared to 9.70% in October, 2010. Inflation based on Food Index is 5.35% in November, 2010 as compared to 7.73% in October, 2010.



Source: PIB

Dearness Allowance is the most eagerly awaited subject now-a-days by the Central government employees…

Dearness Allowance is the most eagerly awaited subject now-a-days by the Central government employees…

In the past, after getting job in the Central government establishments, they wait for promotion to gain some financial benefits… But today employees eagerly awaits for the announcement of Dearness Allowance twice a year, because…

Even if an employee gets a promotion after a prolonged time, the grade pay and increment is very meager. From Rs.1900 to 2000, from 2400 to 2800, from 4200 to 4600 and from 4600 to 4800….so on, the hike in pay is in between Rs.100 to Rs.400 only and so the financial benefits are not upto their expectation.

The annual increment is only 3% of the basic pay, but the DA which is announced twice a year is much more than that as the DA from January to July 2010 was 8% and from July to Dec was 10% which total of 18%.

The Central government announces the DA as per the recommendations of the Labour Bureau which calculates the prices of different essential commodities at different places. There was incidence of government announcing 12% of additional Dearness Allowance once and 1% additional Dearness Allowance on another occasion. Hence, everyone wants to know the calculations taken for DA in deep.

In the next year – 2011, the DA from January to June will be around 6%. It can be increased upto 7% which depends upon the AICPIN. Anyway, the total DA will surely cross the 50% to 51%or 52% for which the Central Government Employees have to wait for some times.

Source: CGELN

All India Consumer Price Index Numbers for Industrial Workerson Base 2001=100 for the Month of October, 2010

All India Consumer Price Index Numbers for Industrial Workerson Base 2001=100 for the Month of October, 2010

All India Consumer Price Index Number for Industrial Workers (CPI-IW) on base 2001=100 for the month of October, 2010 increased by 2 points and stood at 181 (one hundred and eightyone).

During October, 2010, the index recorded an increase of 11 points in Kodarma centre, 7 points in Giridih centre, 6 points in Mercara centre, 5 points each in Bhilwara and Ghaziabad centres, 4 points each in 4 centres, 3 points in 4 centres, 2 points in 12 centres and 1 point in 32 centres. The index decreased by 2 points in Ludhiana centre, 1 point in 3 centres, while in the remaining 17 centres the index remained stationary.

The maximum increase of 11 points in Kodarma centre is mainly on account of increase in the prices of Rice, Wheat, Fish Fresh, Milk, Onion, Garlic, Vegetable & Fruit items, etc. The increase of 7 points in Giridih centre is due to increase in the prices of Rice, Wheat Atta, Milk, Onion, Vegetable items, etc. The increase of 6 points in Mercara centre is due to increase in the prices of Rice, Goat Meat, Onion, Garlic, Vegetable items, Firewood, etc. The increase of 5 points in Bhilwara centre is due to increase in the prices of Rice, Goat Meat, Milk, Onion, Tea (Readymade), Firewood, Auto Rickshaw Charges, etc. and in case of Ghaziabad centre it is due to increase in the prices of Rice, Wheat Atta, Vegetable items, Tailoring Charges, etc. However, the decrease of 2 points in Ludhiana centre is due to decrease in the prices of Wheat Atta, Arhar Dal, Masur Dal, Moong Dal, Vegetable & Fruit items etc.

The indices in respect of the six major centres are as follows:

1. Ahmedabad 178
2. Bangalore 184
3. Chennai 162
4. Delhi 168
5. Kolkata 177
6. Mumbai 181

The point to point rate of inflation for the month of October, 2010 is 9.70% as compared to 9.82% in September, 2010.

CPI(IW) Base 2001=100 Monthly Index Letter - OCTOBER 2010

AICPIN for the month of JULY, AUGUST and SEPTEMBER...

All India Consumer Price Index Number for Industrial Workers (CPI-IW) on base 2001=100 for the month of July, 2010 Read more...

All India Consumer Price Index Numbers for Industrial Workers On Base 2001=100 for the Month of August, 2010 Read more...

All India Consumer Price Index Numbers for Industrial Workers on Base 2001=100 for the Month of September, 2010 Read more...

EXPECTED DEARNESS ALLOWANCE (DA) FROM JAN-2011 FOR CENTRAL GOVERNMENT EMPLOYEES...

EXPECTED DEARNESS ALLOWANCE (DA) FROM JAN-2011 FOR CENTRAL GOVERNMENT EMPLOYEES...

Expected DA from Jan 2011

The central government employees received 10% DA in addition to 35% earlier,which now stands at 45%.They got the payment as two months arrears for July and August.The DA for September was calculated in their regular monthly payments.Through this hike employees got an increase of Rs700 to Rs900 in their monthly salaries. There was no such increase before this.Let us see some of the reasons.

The main reason behind announcing DA is due to the increase of prices in essential commodities.’Labour Bureau’-which is under the central government takes the statistics of the prices of essential commodities in selected cities and this process is known as AICPIN -i.e.- All India Consumer Price Index. DA is calculated only as per the AICPIN.

Regarding the next instalment of DA which is to be announced from Jan 2011,numerous speculations are pouring in.The DA percentage will be calculated as per the AICPIN from September 2010 to December 2010.Suppose the AICPIN stands at 179 points or more,there are chances of getting 50% DA from Jan 2011.

Any way let us assume that the DA will surely cross the 50% which will enable increases in some allowances.

Children Education Allowance,Child Care Allowance,Washing Allowance,Cycle Allowance,Cash Handling Allowance,Conveyance Allowance,Split Duty Allowance will also be increased.

View of www.govtempdiary.com...

All India Consumer Price Index Numbers for Industrial Workers on Base 2001=100 for the Month of September, 2010

All India Consumer Price Index Numbers for Industrial Workers on Base 2001=100 for the Month of September, 2010

All India Consumer Price Index Number for Industrial Workers (CPI-IW) on base 2001=100 for the month of September, 2010 increased by 1 point and stood at 179 (one hundred and seventynine).

During September, 2010, the index recorded an increase of 6 points each in Darjeeling, Durgapur and Jalpaiguri centres, 5 points each in Siliguri and Delhi centres, 4 points each in Angul Talcher, Rajkot and Belgaum centres, 3 points in 12 centres, 2 points in 13 centres and 1 point in 24 centres. The index decreased by 3 points in Bhopal centre, 2 points in 4 centres and 1 point in 4 centres, while in the remaining 12 centres the index remained stationary.

The maximum increase of 6 points in Darjeeling, Durgapur and Jalpaiguri centres is mainly on account of increase in the prices of Rice, Wheat Atta, Vegetable items, Electricity Charges, etc. The increase of 5 points in Siliguri and Delhi centres is due to increase in the prices of Rice, Wheat, Wheat Atta, Onion, Vegetable items, etc. The increase of 4 points in Angul Talcher, Rajkot and Belgaum centres is due to increase in the prices of Rice, Wheat, Goat Meat, Onion, Vegetable items, Tea (Readymade), etc. However, the decrease of 3 points in Bhopal centre is due to decrease in the prices of Rice, Wheat, Goat Meat, Arhar Dal, Vegetable items, etc.

The indices in respect of the six major centres are as follows:
1. Ahmedabad – 176
2. Bangalore – 185
3. Chennai – 162
4. Delhi – 169
5. Kolkata – 176
6. Mumbai – 178

The point to point rate of inflation for the month of September, 2010 is 9.82% as compared to 9.88% in August, 2010.

Source: Labour Bureau

All India Consumer Price Index Numbers for Industrial Workers On Base 2001=100 for the Month of August, 2010

All India Consumer Price Index Numbers for Industrial Workers On Base 2001=100 for the Month of August, 2010

All India Consumer Price Index Number for Industrial Workers (CPI-IW) on base 2001=100 for the month of August, 2010 remained stationary at 178 (one hundred and seventy eight).
During August, 2010, the index recorded an increase of 5 points in Rangapara Tezpur centre, 4 points each in Mariani Jorhat, Munger Jamalpur, Giridih, Asansol and Chhindwara centres, 3 points in 4 centres, 2 points in 5 centres and 1 point in 12 centres. The index decreased by 3 points in Jharia centre, 2 points in 15 centres and 1 point in 17 centres, while in the remaining 18 centres the index remained stationary.

The maximum increase of 5 points in Rangapara Tezpur centre is mainly on account of increase in the prices of Rice, Mustard Oil, Chillies Green, Clothing items, etc. The increase of 4 points in Mariani Jorhat centre is due to increase in the prices of Rice, Wheat Atta, Mustard Oil, Turmeric Powder, Chillies Green Vegetable & Fruit items, etc. The increase of 4 points in Munger Jamalpur centre is due to increase in the prices of Rice, Onion, Tea (Readymade), Clothing items, etc. In Giridih centre this increase is due to increase in the prices of Rice, Arhar Dal, Milk, Turmeric Powder, Firewood, etc. In Asanol centre this increase is mainly due to Rice, Wheat Atta, Milk, Onion, Firewood, Clothing items, etc. In Chhindwara centre this increase is the outcome of increase in the prices of Wheat, Soyabeen Oil, Garlic, Firewood, etc. However, the decrease of 3 points in Jharia centre is due to decrease in the prices of Wheat, Goat Meat, Fish Fresh, Vegetable & Fruit items, etc.

The indices in respect of the six major centres are as follows :

1. Ahmedabad – 173
2. Bangalore – 182
3. Chennai – 161
4. Delhi – 164
5. Kolkata - 175
6. Mumbai – 175


The point to point rate of inflation for the month of August, 2010 is 9.88% as compared to 11.25% in July, 2010.



www.labourbureau.nic.in

An additional Dearness Allowance of 16% - who continue to draw their pay and allowances in the Pre-revised as per 5th CPC scale

An important order has been published by Finance Ministry today for Central Government and Central Autonomous Bodies employees, who are all getting their pay and allowances in the pre-revised scales of pay as per 5th Central Pay Commission.

The additional rate of Dearness Allowance admissible to the above said employees shall be enhanced 16% from the existing rate of 87% to 103% with effect from 1.7.2010

We reproduced the Office Memorandum and given below for your information...

No. 1(3)/2008-EII(B)
Government of India
Ministry of Finance
Department of Expenditure
************

New Delhi, the 29^th September, 2010

OFFICE MEMORANDUM

Subject:- Rates of Dearness Allowance applicable w.e.f. 1.7.2010 to the employees of Central Government and Central Autonomous Bodies continuing to draw their pay in the pre-revised scale as per 5^th CPC.

         The undersigned is directed to refer to this Department’s OM. of even No dated 31^st march,2010 revising the Deafness Allowance w.e.f. 1.1.2010 in respect of employees of Central Government and Autonomous Bodies who continue to draw their pay and allowances in the pre-revised scales of pay as per 5^th Central Pay Commission.

2       The rates of Dearness Allowance admissible to the above categories of employees of Central Government and Central Autonomous bodies shall be enhanced from the existing rate of 87% to 103% w.e.f. 1.7.2010. All other conditions as laid down in the O.M.dated 3^rd October, 2008 will continue to apply.

3       The contents of this Office Memorandum may also be brought to the notice of the organizations under the administrative control of the Ministries/Departments which have adopted the Central Government scales of pay.

(Y.P.Sehgal )
Deputy Secretary to the Government of India

Hindi Version will follow...



www.finmin.nic.in

Payment of Dearness Allowance to Railway employees - Revised rates effective from 01.07.2010

GOVERNMENT OF INDIA
MINISTRY OF RAILWAYS
(RAILWAY BOARD)

RBE.No. 139/2010
New Delhi, dated 22.9.2010.

S.No.PC-VI/227
No.PC-VI/2008/1/7/2/1

The GMs/CAO (R),
All Indian Railways/Production Units
(as per Mailing List)

Subject :    Payment of Dearness Allowance to Railway employees - Revised rates effective from 01.07.2010.

      Please refer to this ministry"s letter to even number dated 26.03.2010 (S.No PC-VI/194, RBE No 45/2010) on the subject mentioned above. The President is pleased to decide that the Dearness Allowance payable to Railway employees shall be enhanced from the existing rate of 35% to 45% with effect from 1^st July 2010.

2.      The provisions contained in paras 3,4 & 5 of this Ministry"s letter of even number dated 09.09.2008 (S.No. PC -VI/3. RBE No 106/2008) shall continue to be applicable while regulating Dearness Allowance under these orders.

3.      The additional installment of Dearness Allowance payable under these orders shall be paid in cash to all railway employees.The arrears may be charged to the salary bill for September 2010 and no honorarium is payable for preparing separate bill for this purpose.

4.      The issues with the concurrence of the finance Directorate of the Ministry of Railways.

s/d
(Hari Krishan)
Director Pay Commission II
Railway Board

Source: AIRF

Payment of Dearness Allowance to Centrel Government employees - Revised rates effective from 1-7-2010

No. 1(6)/2010-E-II(B)
Government of India
Ministry of Finance
Department of Expenditure
-------

New Delhi,the 22^nd September,2010

OFFICE MEMORANDUM

Subject:   Payment of Dearness Allowance to Centrel Government employees - Revised rates effective from 1-7-2010.

------------------

      The undersigned is directed to refer to this ministry’s Office Memorandum No.1(3)/2009-E-II(B) dated 26^th March.2010 on the subject mentioned above and to say that the president is pleased to decide that the Dearness Allowance payable to central government employees shall be enhanced from the existing rate of 35% to 45% with effect from 1^st July 2010.

2 .     The provisions contained in paras 3, 4 and 5 of this Office Memorandum No.1(3)/2008 29^th August,2008 shall continue to be applicable while regulating Dearness Allowance under these orders

3.     The additional instalment of Dearness Allowance payable under these orders shall be paid in cash ro all Central Government employees.

4.    These orders shall also apply to the civilian employees paid from the Defence Services Estimates and expenditure will be chargeable to the relevant head of the Defence Services Estimates.In regard to Armed Forces Personnel and railway employees separate orders will be issued by the Ministry of Defence and Ministry of Railways, respectively.

5.     In so far the persons serving in the Indian Audit an Accounts Department are concerned, these orders issue after consultation with the Comptroller and Auditot General of India.

s/d
(Anil Sharma)
Under Secretary to the Government of India

www.finmin.nic.in

Release of additional instalment of dearness allowance to Central Government employees

Release of additional instalment of dearness allowance to Central Government employees and dearness relief to Pensioners due from 1.7.2010 to compensate for price rise

The Union Cabinet today decided to release an additional instalment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners w.e.f. 1.7.2010 representing an increase of 10% over the existing rate of 35% of the Basic Pay/Pension, to compensate for price rise.

The increase is in accordance with the accepted formula, which is based on the recommendations of the 6th Central Pay Commission.

The combined impact on the exchequer on account of both Dearness Allowance and Dearness Relief will be of the order of Rs. 9303.2 crore per annum and Rs. 6202.1 crore in the financial year 2010-2011 (for a period of 8 months from July,2010 to February, 2011).

Source: PIB

Dearness Allowance announcement likely tomorrow...

Dearness Allowance announcement likely tomorrow after the cabinet meeting...

The much awaited official announcement of the additional Dearness Allowance for Central Government Employees and Pensioners is expected to be announced tomorrow after the cabinet meeting.

Sources said that cabinet to be announced tomorrow, the additional enhanced Dearness Allowance effective from July, 2010 is 10% and the total of 45%.

All India Consumer Price Index Number for Industrial Workers (CPI-IW) on base 2001=100 for the month of July, 2010

All India Consumer Price Index Number for Industrial Workers (CPI-IW) on base 2001=100 for the month of July, 2010 increased by 4 points and stood at 178 (one hundred and seventy eight).

During July, 2010, the index recorded an increase of 11 points each in Bhavnagar and Giridih centres, 10 points each in Ranchi Hatia, Chandigarh and Amritsar centres, 9 points in 2 centres, 8 points in 2 centres, 7 points in 5 centres, 6 points in 9 centres, 5 points in 11 centres, 4 points in 11 centres, 3 points in 11 centres, 2 points in 5 centres and 1 point in 9 centres. The index decreased by 2 points each in Coimbatore and Warrangal centres and 1 point in Salem centre, while in the remaining 5 centres the index remained stationary.

The maximum increase of 11 points in Bhavnagar centre is mainly on account of Housing Index and increase in the prices of Groundnut Oil, Milk, Vegetable & Fruit items, etc. The increase of 11 points in Giridih centre is due to Housing Index and increase in the prices of Rice, Vegetable & Fruit items, Soft Coke, etc. The increase of 10 points each in Ranchi Hatia, Chandigarh and Amritsar centres is mainly on account of Housing Index and increase in the prices of Rice, Wheat Atta, Onion, Vegetable & Fruit items, Kerosene Oil, Cooking Gas, etc. However, the decrease of 2 points in Coimbatore and Warrangal centres is due to decrease in the prices of Rice, Vegetable items, etc. and the decrease of 1 point in Salem centre is due to decrease in the prices of Rice, Vegetable items, etc.

The indices in respect of the six major centres are as follows:

1. Ahmedabad – 175
2. Bangalore – 183
3. Chennai – 162
4. Delhi – 164
5. Kolkata -175
6. Mumbai -175


The point to point rate of inflation for the month of July, 2010 is 11.25% as compared to 13.73% in June, 2010.



www.labourbureau.nic.in

Grant of Dearness Relief to the Railway pensioners who are in receipt of provisional pension or pension in the pre-revised scale of 5th CPC

GOVERNMENT OF INDIA
MINISTRY OF RAILWAYS
(RAILWAY BOARD)

PC-VI No.221
RBE No.115/2010

New Delhi, dated 10.08.2010

S.No.PC-VI/222
No.PC-V/2009/A/DR/1

The General Managers/CAO(R)
All Indian Railways / PUs

(As per standard mailing list)

Sub:    Grant of Dearness Relief to the Railway pensioners who are in receipt of provisional pension or pension in the pre-revised scale of 5th CPC w.e.f.1-1-2010.

             A copy of Office Memorandum No.42/18/2010-P&W (G) dated 29-6-2010 of Ministry of Personnel, Public Grievances & Pensions (Department of Pension & Pensioners' Welfare) on the above subject is sent herewith for your information and necessary action.

2.          In pursuance of the enhanced rates of ex-gratia to the surviving SRPF (C) retirees issued vide Board's letter No. F(E)III/98/PNI/Ex-Gr./3 dated 15.11.2006 para 1 (ii) of DoP&PW's O.M. dated 29-6-2010 may be read as under:- "The surviving Group 'A', 'B', 'C' and 'D' SRPF (Contributory) beneficiaries who had retired from service during the period from 01.04.1957 to 31.12.1985 and have been sanctioned enhanced slab-wise ex-gratia @ Rs.3000/-, Rs.1000/-, Rs.750/- and Rs.650/- per month respectively w.e.f. 01.11.2006, in lieu of uniform rate of Rs.600/-p.m. are entitled to Dearness Relief @87% w.e.f. 1.1.2010."

        3. A concordance of various instructions and orders referred to in the enclosed office memoranda with reference to corresponding Railway instructins is indicated below:-

S.No.	Para No.	No. and date of Deptt. of Pension & Pensioners' welfare's O.M.	No.& date of Corresponding orders issued by Railway Board
1.	1 of OM dated 29-6-2010	OM No.42/12/2009-P&PW (G) dated 17-11-2009	PC-V/2009/A/DR/1 dt.07-01-2010
2.	2 of OM dated 17.11.2009	OM No. 45/52/97-P&PW (E) dt. 16.12.1997	F(E)III/97/PN1/EX-Gr/3 dt. 31.12.1997

4.          This issues with the concurrence of the Finance Directorate of the Ministry of Railways.

5.          Hindi version will follow.

DA: As above

s/d
(N.P.Singh)
Dy.Director, Pay Commission - V
Railway Board.

More details...
All India Railwaymen's Federation

DA from July 2010 : AICPIN for the month of June-2010 published by Labour Bureau

Just now All India Consumer Price Index Number for Industrial Workers (CPI-IW) on base 2001=100 value has been released by Labour Bureau. The value of the index stands at 174 level, so in this situation, the Dearness Allowance for Central Government Employees will be rised 10% and total of 45% (35% + 10%).

Press Release

Consumer Price Index Numbers for Industrial Workers on Base 2001=100
CPI(IW) Base 2001=100 Monthly Index Letter - JUNE 2010

MAY 2010	JUNE 2010
172	174

ALL INDIA CONSUMER PRICE INDEX NUMBERS FOR INDUSTRIAL WORKERS
ON BASE 2001=100 FOR THE MONTH OF JUNE, 2010

1. All India Consumer Price Index Number for Industrial Workers (CPI-IW) on base 2001=100 for the month of June, 2010 increased by 2 points and stood at 174 (one hundred and seventy four).

2. During June, 2010, the index recorded an increase of 8 points in Varanasi centre, 6 points each in Quilon and Giridih centres, 5 points in 4 centres, 4 points in 8 centres, 3 points in 13 centres, 2 points in 17 centres and 1 point in 19 centres. The index decreased by 1 point each in Ludhiana and Ghaziabad centres, while in the remaining 12 centres the index remained stationary.

3. The maximum increase of 8 points in Varanasi centre is mainly due to increase in the prices of Rice, Wheat, Fresh Milk, Onion, Vegetable and Fruit items, Electricity Charges, Bus Fare, Tailoring Charges, etc. The increase of 6 points in Quilon centre is due to increase in the prices of Rice, Fish Fresh, Onion, Vegetable and Fruit items, Cigarette, Tailoring Charges, etc. and in Giridih centres it is due to increase in the prices of Mustard Oil, Fish Fresh, Turmeric Powder, Vegetable and Fruit items, Soft Coke, etc. However, the decrease of 1 point each in Ludhiana and Ghaziabad centres is due to decrease in the prices of Onion, Vegetable items, Sugar, etc.

4. The indices in respect of the six major centres are as follows :

1. Ahmedabad – 169
2. Bangalore –182
3. Chennai – 162
4. Delhi – 159
5. Kolkata -172
6. Mumbai -171

5. The point to point rate of inflation for the month of June, 2010 is 13.73% as compared to 13.91% in May, 2010.

6. The CPI-IW for July, 2010 will be released on the last working day of the next month, i.e. 31st August, 2010.

Labour Bureau

DEARNESS ALLOWANCE : NO - 1 Allowance...!

Dearness Allowance : ‘King’ of all allowances…!

The central government disburses different types of allowances to their employees. Allowances are given for different reasons :-

DA is given for rise in prices of essential commodities…

CEA is for Children’s education…

HRA for accommodation in rented houses…

FPA for family planning operation for maintaining small family and so on…

An individual may not be granted all the allowances. The disbursement of allowances has some limitations – due to different situations…

For example,

Those who gets a pay below Rs.7440, the Transport Allowance will be Rs.600+DA, those who are above Rs.7440, the TA will be Rs.1600+DA, and those who gets a grade pay Rs.5400 and above the TA will be Rs.3200+DA…

Those employees who are married and has two school going children, they are eligible to get Rs.12000 per year as Children Education Allowance…

HRA is given as per city grade specifications as 30%, 20%, 10%, but we all know that DA is given to all Central Government Employees evenly as per their basic pay. So this stands apart…

Moreover, when the DA goes up 50%, it gives some pushups to Compensatory Allowances such as – Increases of 25% in Children Education Allowance, Child Care Allowance, Washing Allowance, Cycle Allowance, Cash Handling Allowance, Conveyance Allowance, Split Duty Allowance will also be increased.

It also boosts up some advances namely – Flood Advance, Festival Advance will be increased by 25%, when the DA goes up 50% as per recommendations in the 6th CPC report.

So to conclude, we can use the term ‘King’ for the Dearness Allowance.

Source : CGStaffnews

AICPI Numbers for Industrial Workers on Base 2001=100 for the month of March, 2010

All India Consumer Price Index Numbers for Industrial Workers on Base 2001=100 for the month of March, 2010

All India Consumer Price Index Number for Industrial Workers (CPI-IW) on base 2001=100 for the month of March, 2010 remained stationary at 170 (one hundred and seventy).

During March, 2010, the index recorded a decrease of 4 points each in Tiruchirapally, Giridih and Sholapur centres, 3 points each in Coimbatore, Quilon, Madurai, Kodarma and Yamunanagar centres, 2 points in 12 centres and 1 point in 22 centres. The index increased by 4 points in Ludhiana centre, 2 points in Jamshedpur centre and 1 point in 10 centres, while in the remaining 24 centres the index remained stationary.

The maximum decrease of 4 points each in Tiruchirapally, Giridih and Sholapur centres is mainly on account of decrease in the prices of Rice, Arhar Dal, Masur Dal, Onion, Vegetable & Fruit items, Sugar, etc. The decrease of 3 points each in Coimbatore, Quilon, Madurai, Kodarma and Yamunanagar centres is due to decrease in the prices of Rice, Wheat, Arhar Dal, Onion, Vegetable items, Coconut, Sugar, Flower/Flower Garlands, etc. However, the increase of 4 points in Ludhiana centre is mainly due to increase in the prices of Wheat Atta, Vegetable Items, Petrol, etc. The increase of 2 points in Jamshedpur centre is due to increase in the prices of Wheat Atta, Vegetable Items, Petrol, etc.

The indices in respect of the six major centres are as follows :

1. Ahmedabad - 164
2. Delhi - 157
3. Bangalore - 175
4. Kolkata - 166
5. Chennai - 155
6. Mumbai - 166

The point to point rate of inflation for the month of March, 2010 remained constant i.e. 14.86% at the level of February, 2010.

Payment of Dearness Allowance to Railway employees

Government of India
Ministry of Railways
Railway Board

  

S.No.PC-VI/194
No. PC-VI/2008/I/7/2/1

  

RBE No.45/2010
New Delhi, dated 26.3.2010

  

The GMs / CAO(R),
All Indian Railways & Production Units
(as per mailing list)

  

                   Sub:-    Sub: Payment of Dearness Allowance to Railway employees-
                                Revised rates effective from 01.01.2010.

  

        Please refer to this Ministry's letter of even number dated 18.09.2009(S.No PC-V1/146, RBE No. 172/2009) on the subject mentioned above. ThePresident is pleased to decide that the Dearness Allowance payable to Railwayemployees shall be enhanced from the existing rate of 27%to 35% with effectfrom 1st January, 2010.

2. The provisions contained in Paras 3, 4 & 5 of this Ministry's letter of even number dated 09.09.2008 (S.No. PC-VI/3, RBE No. 106/2008) shall continue to be applicable while regulating Dearness Allowance under these orders.

3. The additional installment of Dearness Allowance payable under these orders shall be paid in cash to all railway employees. The payment of arrears of Dearness Allowance for the months of January and February, 2010 shall not be made before the date of disbursement of salary for March, 2010.

4. This issues with the concurrence of the Finance Directorate of the Ministry of Railways.

(Koshy Thomas)
Joint Director, Pay Commission-II
Railway Board

No.PC-VI/2008/l/7/2/1

New Delhi, dated 26.03.2010

Copy (with 40 spares) forwarded to ADAI (Railways), New Delhi.

for Financial Commissioner / Railways.

Five smart ways to use your bonus, DA windfall

Five smart ways to use your bonus, DA windfall

Last week, the Union Cabinet provided relief to over five million central government employees by increasing the dearness allowance (DA) from 27 per cent to 35 per cent. It also increased the dearness relief (DR) for pensioners by 8 per cent.

These amounts will be paid to employees and pensioners with retrospective effect, from January 2010. DA is calculated as a percentage of basic salary; DR is a percentage of basic pension, based on the cost of living index.

Windfall gains are easier to dream about than manage. Here is some advice on using the money:

Clear or reduce liabilities: Start with retiring high-cost credit card dues and personal loans. Even if you can't clear the entire debt in one go, start the process.

Interest on credit card loans can be as high as 40-50 per cent a year and on personal loans between 12 per cent and 30 per cent.

Govind Pathak, director, Acorn Wealth, said: "A home loan is the only one that can be continued because of the tax benefits it provides."

Purchase medical insurance: Even if you have a company-provided plan, it makes sense to have an additional policy "Take a health plan when you are between 40 and 50 so that it runs after your retirement too," added Pathak.

Start investing for a corpus: Use the amount to start investing through systematic investment plans of mutual funds. Even if you make a small start, savings over a long period can be substantial because of compounding of investments. Equity diversified funds should be the way to go. If it is a large sum, use the systematic transfer plan route.

Anil Rego, CEO, Right Horizons, said: "Pensioners should invest to build an emergency kitty for medical purposes."

Debt is a good option: Those nearing retirement should opt for debt, as protecting the capital with stable returns is of prime importance. Use monthly income plans that work like debt-oriented balanced funds. These invest only 20 per cent of the money in equities.

Taxation: Homi Mistry, tax partner, Deloitte, Haskins and Sells, said: "The employer is liable to tax the employee at source at the time of making the payment. If arrears paid in a relevant year are not taxed in the earlier year, the employee will be taxed in the year the payment is made."

Therefore, the government will deduct tax at source when the amount is paid in April.

For pensioners, the tax will depend on the total income, including the pension amount and income from other sources. Also, the exemption limit of Rs 2.4 lakh (Rs 240,000) is available only to those above the age of 65. Not to forget that if the tax is deducted at source, it will be on the basis of the old tax slab.
Source: Rediff Business

How to calculate Dearness Allowance...

New DA Calculation after Gazzetted Notification

Government has notified the revised DA calculation based on the AICPI 2001 series published by labourbureau.nic.in

REVISED DEARNESS ALLOWANCE CALCULATION BASED ON GAZZETTED NOTIFICATION OF SIXTH PAY COMMISSION All India Consumer Price Index (General) for Industrial Workers (Base 1982=100) Year Jan Feb. March April May June July Aug. Sept. Oct. Nov. Dec. Average(Rounded) 2005, respectively 526, 525, 525, 529, 527, 529, 538, 540, 542, 548, 553, 550, 536* Note:* 536 is taken as a base as on 01.01.2006 for revised DA calculation.

It comes to 115.76 when converting in 2001 series after dividing by a linking factor of 4.63 in 1982 series, ( 536/4.63 = 115.76). this figure is given in Gazzeted notification All India Consumer Price Index (General) for Industrial Workers (Base 2001=100) published by labourbureau.nic.in.

Year Jan. Feb. March April May June July Aug. Sept. Oct. Nov. Dec. Average(Rounded) 2006, 119, 119, 119, 120, 121, 123, 124, 124 125, 127, 127, 127, 123 2007, 127, 128, 127, 128, 129, 130, 132, 133, 133, 134, 134, 134, 130.75 2008, 134, 135, 137, 138, 139, 140, 143

Note : Read last three column of table given below as1 = 12 monthly average of

AICPI (IW) base year 2001=100 2 = %

DA calculation = (Avg AICPI base 2001 - 115.76)*100/115.763 = % DA after rounded offDate 1.7.2006, 116, 116, 117, 118, 119, 119, 119, 119, 119, 120, 121, 123, 118.95, 2.76, 2% 1.1.2007, 119, 119, 119, 120, 121, 123, 124, 124, 125, 127, 127, 127, 123, 6.25, 6% 1.7.2007, 124, 124, 125, 127, 127, 127, 127, 128, 127, 128, 129, 130, 126.91, 9.63, 9% 1.1.2008, 127, 128, 127, 128, 129, 130, 132, 133, 133, 134, 134, 134, 130.75, 12.94, 12% 1.7.2008, 132 , 133, 133, 134, 134, 134, 134, 135, 137, 138, 139, 140, 135.25, 16.83, 16%

DA calculation as on 01.07.2006 :12 monthly average of AICPI (IW) 2001 series, (year 2001=100) from 01.07.2005 to 30.06.06 = 118.95% DA calculation = (Avg AICPI base 2001 - 115.76)*100/115.76 = (118.95 - 115.76)*100/115.76 = 2.76 %% DA after rounded off = 2 % effective from 01.07.2006

DA calculation as on 01.01.2007 :12 monthly average of AICPI (IW) 2001 series, (year 2001=100) from 01.01.2006 to 31.12.06 = 123% DA calculation = (Avg AICPI base 2001 - 115.76)*100/115.76 = (123 - 115.76)*100/115.76 = 6.25 %% DA after rounded off = 6 % effective from 01.01.2007

DA calculation as on 01.07.2007 :12 monthly average of AICPI (IW) 2001 series, (year 2001=100) from 01.07.2006 to 30.06.07 = 126.91% DA calculation = (Avg AICPI base 2001 - 115.76)*100/115.76 = (126.91 - 115.76)*100/115.76 = 9.63 %% DA after rounded off = 9 % effective from 01.07.2007

DA calculation as on 01.01.2008 :12 monthly average of AICPI (IW) 2001 series, (year 2001=100) from 01.01.2007 to 31.12.07 = 131% DA calculation = (Avg AICPI base 2001 - 115.76)*100/115.76 = (130.75 - 115.76)*100/115.76 = 12.94 %% DA after rounded off = 12 % effective from 01.01.2008

DA calculation as on 01.07.2007 :12 monthly average of AICPI (IW) 2001 series, (year 2001=100) from 01.07.2007 to 30.06.08 = 135.25% DA calculation = (Avg AICPI base 2001 - 115.76)*100/115.76 = (126.91 - 115.76)*100/115.76 = 16.83 %% DA after rounded off = 16 % effective from 01.07.2008

Date for %DAapplicable DA As on1.7.2006 = 2 %1.1.2007 = 6%1.7.2007 = 9%1.1.2008 = 12%1.7.2008 = 16%

Notes : 1.AICPI for industrial worker Base 2001 is available from Jan. 2006 onward only, therefore as recommended by pay commission back data from July 2005 to Dec 2005 is generated on 2001 series by carryingout back calculation on 1982 series ( by dividing linking factor 4.63) for calculating the 12 monthly average from July 2005 to June 2006 ( for applicable DA as on 01.07.2006

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