Centre issues 100% DA order
The Central government employees are entitled for dearness allowance at the rate of 100% of the basic with effect from 1 January 2014 which was approved by the Union cabinet on February 28, 2014.Accordingly, the Finance Ministry today issued order of additional instalment of Dearness Allowance (DA) to central government employees at the rate of 10% increase over the existing rate of 90% vide F.No.1/1/2012-E-II(B) dated March 27, 2014 which would be effective from the January 1 this year.
The arrears of dearness allowance shall be paid in cash but not before the date of disbursement of salary of the March 2014. As per practice, the government uses Consumer Price Index — Industrial Workers data of the past 12 months to arrive at a quantum for the purpose of any DA hike.
Thus, the retail inflation for industrial workers between January 1 to December 31, 2013 was used to take a final call on the matter. The merging of 50 percent dearness allowance with basic pay will take place only when the seventh central pay commission submits an interim report in this respect.
No.1/1/2014-F-II (B)
Government of India
Ministry of Finance
Department of Expenditure
North Block, New Delhi
Dated: 27th March. 2014
OFFICE MEMORANDUM
Subject: Payment of Dearness Allowance to Central Government employees - Revised Rates effective from 1.1.2014.
The undersigned is directed to refer to this Ministry’s Office
Memorandum No.I-8/2013-E-II (B) dated 25th September, 2013 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 90% to 100% with effect from January, 2014.
2. The provisions contained in paras 3, 4 and 5 of this Ministry’s O.M.
No.1(3)/2008-E-11(B) dated 29th August, 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 Central Government employees.
4. The payment of arrears of Dearness Allowance shall not he made before the date of disbursement of salary of March. 2014.
5. These orders shall also apply to the civilian employees paid from the
Defence Services Estimates and the 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 he issued
by the Ministry of Defence and Ministry of Railways, respectively.
6. In so far as the employees working in the Indian Audit and Accounts
Department are concerned, these orders are issued with the concurrence
of the Comptroller and Auditor General of India.
sd/-
(A.Bhattacharya)
Under Secretary to the Government of India