ALLOWANCE-DEARNESS ALLOWANCE TO STATE GOVERNMENT EMPLOYEES AND TO THE TEACHERS COMING UNDER UGC/AICTE /MEDICAL EDUCATION SCHEMES - DEARNESS RELIEF TO STATE GOVERNMENT PENSIONERS AND FAMILY PENSIONERS INCLUDING THOSE COMING UNDER UGC/AICTE/MEDICAL EDUCATION SCHEMES AND THOSE DRAWING DEARNESS RELIEF AT CENTRAL RATES WITH EFFECT FROM 01.01.2010 - REVISION-ORDERS ISSUED.
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G.O.(P)No.362/2010/Fin. Dated, Thiruvananthapuram, 3rd July 2010.
Read:-
1. G.O.(P) No.512/2009/Fin. Dated 18.11.2009.
2. OM No. 1(3)/2010-E II (B) dated 26.03.2010 from the Department of Expenditure, Ministry of Finance, Government of India.
3. OMF No.42/18/2010 - P&PW (G) dated 31.03.2010 from the Department of Pension & Pensioners’ Welfare, Ministry of Personal, Public Grievances and Pensions, Government of India.
4. OM No.1 (3)12008 - E II (B) dated 31.03.2010 from the Department of Expenditure, Ministry of Finance,
Government of India.
In the Office Memoranda cited above, Government of India sanctioned revised rate of DA/DR to Central Government employees, Pensioners and family pensioners with effect from 01.01.2010.
2. On the basis of above orders, the rates of Dearness Allowance payable to State Government Employees, Teachers, Staff of Aided Schools, Private Colleges and Polytechnics, Full Time employees borne on the contingent and work charged establishments and employees of Local Bodies will be revised w.e.f. 01.01.2010 as shown below:
3. (i) In respect of teachers coming under UGC/AICTE/Medical Education Schemes (in whose case DA upto 50% has been converted as Dearness Pay the DA will be revised with effect from 01.01.2010 as shown below:
(ii) In respect of the teaching staff coming under UGC/AICTE/Medical Education Schemes who have changed over to revised UGC/AICTE scale from 01.01.2006 or thereafter the D.A will be revised with effect from 01.01.2010 as shown below:
4. The additional expenditure on this account in respect of Local Bodies will be met by them from their own funds.
5. The revised rate of DA will be applicable to part-time teachers and parttime contingent employees also on the basis of pay drawn by them.
6. The employees of State Public Sector Undertakings/Statutory Corporations/Autonomous bodies on State DA pattern, are also eligible for the enhanced rate of DA, subject to the following conditions:
i) This will apply only in Public Sector Undertakings, Statutory Corporations, Autonomous Bodies etc., where State D.A. or Central D.A. (with 50% merger) is in force. This will not be applicable where variable D.A. is in force.
ii) Shifting from one DA system (ie., State D.A., Variable D.A, Central D.A.) to another requires separate and specific prior approval of the Government. Orders in this regard are to be issued by the Administrative Department in consultation with Planning & Economic Affairs (BPE) Department and Finance Department. Such migration cannot be done on the basis of this Government Order.
iii) Those organizations which are already on State D.A. can release the revised rates of D.A. to their employees without reference to Government. However, a decision on this has to be taken by the Board of Directors of the organization, keeping in mind the ability of the organization to pay for the increase from their own resources. If the organization cannot meet such expenses on their own, and has to get funds from the Government for this, prior approval of the Government should be taken. (Orders in Government can be issued by the Administrative Department only in consultation with Planning & Economic Affairs (BPE) Department and Finance Department.) The condition that those organizations which require funds from the Government to pay the DA instalments need to take prior Government approval will
not apply to organizations such as Universities, Kerala Water Authority, Kerala State Council for Science, Technology and Environment etc. where more than 90% of the salary expenses are met by Non Plan grant from the Government. They can release DA instalments without prior approval of the Government but with the approval of the Board/Executive Committee etc.
7. For those who are continuing in the 1997 pay scales even after 01.01.2010, DA will be sanctioned (up to the date of effect of option under Pay Revision 2004) as follows:
8. The rate of Dearness Allowance admissible to those employees in Public Sector Undertakings who were getting pay and allowances based on the scales of pay admissible under 1992 Pay Revision shall be enhanced as shown below with effect from 01.01.2010.
9. The accounting and drawal of arrears of DA will be regulated as follows:
a. The revised rate of D.A. due from 01.01.2010 (additional 14%) will be paid in cash with the salary due for the month of August, 2010 onwards.
b. (1) The arrear for the period from 01.01.2010 to 31.07.2010 will be drawn and credited to the PF account of the employee along with the salary bill for the month of August, 2010 to February, 2011.
(2) The permission to draw arrears along with the salary bill is given in relaxation to Rule 176 of Kerala Treasury Code .
c. The procedure as stated in para 9(a) and (b) will also be applicable to the employees continuing in the pre-revised scale even after the 2004 pay revision and also to the employees continuing in the pre-revised scale even after the 1996 UGC/AICTE/Medical Education Scheme.
d. Where the employee is not eligible to subscribe to any PF account before 31.07.2010, the drawal of arrears of DA shall be deferred. As and when the PF account is opened, it shall be drawn and deposited in it.
e. For claiming the salary for the month of March 2011, a certificate shall be attached to the salary bill to the effect that "The arrears as per DA revision from 01.01.2010 to 31.07.2010 have been claimed and credited to the PF account of the employee".
f. The procedure as stated in para 9 (e) above will also be applicable to the employees continuing in the pre-revised scale of pay even after the 2004 pay revision and also those continuing in the pre-revised scale of pay even after the 1996 UGC/AICTE/Medical Education Schemes pay revision.
g. Interest on D.A. credited to PF account will accrue from the 1st day of the month in which the bills are passed by the Treasury.
h. No withdrawal, other than final withdrawal, shall be made before the date specified below, from the arrears of DA credited to PF account
i. The condition mentioned under clause (h) above will be applicable "mutatis mutandis" to Provident Fund other than General Provident Fund also. In regard to Contributory Provident Fund, however, there will be no matching contribution from the Government in respect of the arrears of D.A.
10. In the bill as well as in the PF schedule the arrears of D.A. from 01.01.2010 to 31.07.2010 may be indicated separately. Accordingly, the amount of arrears of D.A. to be credited to Provident Fund Account should be shown as a separate entry in the Provident Fund schedule as shown below:
11. The following categories of employees will be paid arrears of DA in cash:
(i) Those, in whose cases, it is not obligatory to maintain PF Account
(ii) Part-time teachers
(iii) Those who have opted not to subscribe to the PF account during the last one year of their service prior to retirement.
12. Government are also pleased to revise the rate of Dearness Relief with effect from 01.01.2010 to State Service Pensioners and Family Pensioners and also to the Pensioners/Family Pensioners coming under UGC/AICTE/Medical Education Schemes (who retired prior to 01.07.2004 and whose pension/familypension has been revised as per G.O.(P) No.81/07/Fin. dated 28.02.2007), as follows:
13. For the Pensioners/Family Pensioners, coming under UGC/AICTE/Medical Education Schemes who retired after 01.07.2004 and whose pension has been revised as per G.O.(P) No.84/07/Fin dated 01.03.2007 and those drawing Dearness Relief at Central Rates viz. Retired Judicial Officers the rate of Dearness Relief will be revised with effect from 01.01.2010 as follows:
14. The pension structure of Ex-chairman and Members of Kerala Public Service Commission had been modified and the rate of Dearness Relief admissible to them has been changed vide G.O.(Ms)No.169/09/GAD dated 16.07.2009. The rate of Dearness Relief admissible with effect from 01.01.2010 to Ex-Chairman and Members who had prior service under Government and opted pension for combined service and retired after 01.07.2004 is 87% (DR beyond 1510 points less 50% merged). All other categories of Ex-Chairman and Members are eligible for DR as admissible to State Service Pensioners, ie, 78% with effect from 01.01.2010.
15. In respect of the teaching staff coming under UGC/AICTE/Medical Education Schemes who have changed over to revised UGC/AICTE scale from 01.01.2006 and for those retired thereafter, the rate of Dearness Relief will be revised with effect from 01.01.2010 as follows:
This rate will be applicable only after the issuance of Government Order declaring the pension structure of those who have retired after 01.01.2006.
16. In respect of The Pensioners/Family Pensioners whose pension has not undergone revision as per G.O.(P) No.180/06/Fin. dated 18.04.2006 and are drawing the Pension/Family Pension as per pension revision 1997, and in respect of Pensioners/Family Pensioners coming under UGC/AICTE/Medical Education Schemes whose pension has not undergone revision as per G.O.(P) No.81/07/Fin.dated 28.02.2007 or G.O.(P) No.84/07/Fin. dated 01.03.2007, the Dearness Relief will be sanctioned as follows .
This will be applicable only till such time as the date of effect of option for Pension Revision 2004, after which the Dearness Relief payable will be as indicated in para 12 above.
17. The revised Dearness Relief due from 01.01.2010 @ 14% along with the arrears up to July, 2010 will be released in cash along with the pension of August,2010. Payment of Dearness Relief involving fraction of a rupeed shall be rounded off to the next higher rupee.
Original Copy
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FINANCE (PAY RESEARCH UNIT) DEPARTMENT
G.O.(P)No.362/2010/Fin. Dated, Thiruvananthapuram, 3rd July 2010.
Read:-
1. G.O.(P) No.512/2009/Fin. Dated 18.11.2009.
2. OM No. 1(3)/2010-E II (B) dated 26.03.2010 from the Department of Expenditure, Ministry of Finance, Government of India.
3. OMF No.42/18/2010 - P&PW (G) dated 31.03.2010 from the Department of Pension & Pensioners’ Welfare, Ministry of Personal, Public Grievances and Pensions, Government of India.
4. OM No.1 (3)12008 - E II (B) dated 31.03.2010 from the Department of Expenditure, Ministry of Finance,
Government of India.
ORDER
In the Office Memoranda cited above, Government of India sanctioned revised rate of DA/DR to Central Government employees, Pensioners and family pensioners with effect from 01.01.2010.
2. On the basis of above orders, the rates of Dearness Allowance payable to State Government Employees, Teachers, Staff of Aided Schools, Private Colleges and Polytechnics, Full Time employees borne on the contingent and work charged establishments and employees of Local Bodies will be revised w.e.f. 01.01.2010 as shown below:
| Date from which payable | Percentage increase of DA | Revised D.A. |
| 01.01.2010 | 14% | 78% |
3. (i) In respect of teachers coming under UGC/AICTE/Medical Education Schemes (in whose case DA upto 50% has been converted as Dearness Pay the DA will be revised with effect from 01.01.2010 as shown below:
| Date from which payable | Percentage increase of DA | Revised D.A. |
| 01.01.2010 | 14% | 87% |
(ii) In respect of the teaching staff coming under UGC/AICTE/Medical Education Schemes who have changed over to revised UGC/AICTE scale from 01.01.2006 or thereafter the D.A will be revised with effect from 01.01.2010 as shown below:
| Date from which payable | Percentage increase of DA | Revised D.A. |
| 01.01.2010 | 8% | 35% |
4. The additional expenditure on this account in respect of Local Bodies will be met by them from their own funds.
5. The revised rate of DA will be applicable to part-time teachers and parttime contingent employees also on the basis of pay drawn by them.
6. The employees of State Public Sector Undertakings/Statutory Corporations/Autonomous bodies on State DA pattern, are also eligible for the enhanced rate of DA, subject to the following conditions:
i) This will apply only in Public Sector Undertakings, Statutory Corporations, Autonomous Bodies etc., where State D.A. or Central D.A. (with 50% merger) is in force. This will not be applicable where variable D.A. is in force.
ii) Shifting from one DA system (ie., State D.A., Variable D.A, Central D.A.) to another requires separate and specific prior approval of the Government. Orders in this regard are to be issued by the Administrative Department in consultation with Planning & Economic Affairs (BPE) Department and Finance Department. Such migration cannot be done on the basis of this Government Order.
iii) Those organizations which are already on State D.A. can release the revised rates of D.A. to their employees without reference to Government. However, a decision on this has to be taken by the Board of Directors of the organization, keeping in mind the ability of the organization to pay for the increase from their own resources. If the organization cannot meet such expenses on their own, and has to get funds from the Government for this, prior approval of the Government should be taken. (Orders in Government can be issued by the Administrative Department only in consultation with Planning & Economic Affairs (BPE) Department and Finance Department.) The condition that those organizations which require funds from the Government to pay the DA instalments need to take prior Government approval will
not apply to organizations such as Universities, Kerala Water Authority, Kerala State Council for Science, Technology and Environment etc. where more than 90% of the salary expenses are met by Non Plan grant from the Government. They can release DA instalments without prior approval of the Government but with the approval of the Board/Executive Committee etc.
7. For those who are continuing in the 1997 pay scales even after 01.01.2010, DA will be sanctioned (up to the date of effect of option under Pay Revision 2004) as follows:
| Date from which payable | Percentage increase of DA | Revised D.A. |
| 01.01.2010 | 14% | 137% |
8. The rate of Dearness Allowance admissible to those employees in Public Sector Undertakings who were getting pay and allowances based on the scales of pay admissible under 1992 Pay Revision shall be enhanced as shown below with effect from 01.01.2010.
| Date of effect | Pay Range | Rate of DA per month |
| 01.01.2010 | Basic pay upto Rs.3500 p.m. | 489 % of pay |
| Basic pay above Rs.3500 upto Rs.6000 p.m. | 392% of pay subject to minimum of Rs.17,115 | |
| Basic pay above Rs.6000 | 353 % of pay subject to minimum of Rs.23,520 |
9. The accounting and drawal of arrears of DA will be regulated as follows:
a. The revised rate of D.A. due from 01.01.2010 (additional 14%) will be paid in cash with the salary due for the month of August, 2010 onwards.
b. (1) The arrear for the period from 01.01.2010 to 31.07.2010 will be drawn and credited to the PF account of the employee along with the salary bill for the month of August, 2010 to February, 2011.
(2) The permission to draw arrears along with the salary bill is given in relaxation to Rule 176 of Kerala Treasury Code .
c. The procedure as stated in para 9(a) and (b) will also be applicable to the employees continuing in the pre-revised scale even after the 2004 pay revision and also to the employees continuing in the pre-revised scale even after the 1996 UGC/AICTE/Medical Education Scheme.
d. Where the employee is not eligible to subscribe to any PF account before 31.07.2010, the drawal of arrears of DA shall be deferred. As and when the PF account is opened, it shall be drawn and deposited in it.
e. For claiming the salary for the month of March 2011, a certificate shall be attached to the salary bill to the effect that "The arrears as per DA revision from 01.01.2010 to 31.07.2010 have been claimed and credited to the PF account of the employee".
f. The procedure as stated in para 9 (e) above will also be applicable to the employees continuing in the pre-revised scale of pay even after the 2004 pay revision and also those continuing in the pre-revised scale of pay even after the 1996 UGC/AICTE/Medical Education Schemes pay revision.
g. Interest on D.A. credited to PF account will accrue from the 1st day of the month in which the bills are passed by the Treasury.
h. No withdrawal, other than final withdrawal, shall be made before the date specified below, from the arrears of DA credited to PF account
| Date on which the amount will be permitted to be withdrawn | |
| Arrears for the period from 01.01.2010 to 31.07.2010 | 31.03.2014 or retirement whichever is earlier |
i. The condition mentioned under clause (h) above will be applicable "mutatis mutandis" to Provident Fund other than General Provident Fund also. In regard to Contributory Provident Fund, however, there will be no matching contribution from the Government in respect of the arrears of D.A.
10. In the bill as well as in the PF schedule the arrears of D.A. from 01.01.2010 to 31.07.2010 may be indicated separately. Accordingly, the amount of arrears of D.A. to be credited to Provident Fund Account should be shown as a separate entry in the Provident Fund schedule as shown below:
| Subscription proper | Refund of Advance | Arrears of DA | Amount | |||
| Amount | Month to which it related | No. of instalments | Amount | Month to which it relates | From 01.01.2010 to 31.07.2010 | Total |
| (6) | (7) | (8) | (9) | (10) | (11) | (12) |
| 6+9+11 | ||||||
11. The following categories of employees will be paid arrears of DA in cash:
(i) Those, in whose cases, it is not obligatory to maintain PF Account
(ii) Part-time teachers
(iii) Those who have opted not to subscribe to the PF account during the last one year of their service prior to retirement.
12. Government are also pleased to revise the rate of Dearness Relief with effect from 01.01.2010 to State Service Pensioners and Family Pensioners and also to the Pensioners/Family Pensioners coming under UGC/AICTE/Medical Education Schemes (who retired prior to 01.07.2004 and whose pension/familypension has been revised as per G.O.(P) No.81/07/Fin. dated 28.02.2007), as follows:
| Date of effect | Percentage increase of Dearness Relief | Revised Dearness Relief payable |
| 01.01.2010 | 14% of Pension/ Family Pension | 78% of Pension/ Family Pension |
13. For the Pensioners/Family Pensioners, coming under UGC/AICTE/Medical Education Schemes who retired after 01.07.2004 and whose pension has been revised as per G.O.(P) No.84/07/Fin dated 01.03.2007 and those drawing Dearness Relief at Central Rates viz. Retired Judicial Officers the rate of Dearness Relief will be revised with effect from 01.01.2010 as follows:
| Date of effect | Percentage increase of Dearness Relief | Revised Dearness Relief payable |
| 01.01.2010 | 14% of Pension/ Family Pension | 87% of Pension/ Family Pension |
14. The pension structure of Ex-chairman and Members of Kerala Public Service Commission had been modified and the rate of Dearness Relief admissible to them has been changed vide G.O.(Ms)No.169/09/GAD dated 16.07.2009. The rate of Dearness Relief admissible with effect from 01.01.2010 to Ex-Chairman and Members who had prior service under Government and opted pension for combined service and retired after 01.07.2004 is 87% (DR beyond 1510 points less 50% merged). All other categories of Ex-Chairman and Members are eligible for DR as admissible to State Service Pensioners, ie, 78% with effect from 01.01.2010.
15. In respect of the teaching staff coming under UGC/AICTE/Medical Education Schemes who have changed over to revised UGC/AICTE scale from 01.01.2006 and for those retired thereafter, the rate of Dearness Relief will be revised with effect from 01.01.2010 as follows:
| Date of effect | Percentage increase of Dearness Relief | Revised Dearness Relief payable |
| 01.01.2010 | 8% | 35% |
This rate will be applicable only after the issuance of Government Order declaring the pension structure of those who have retired after 01.01.2006.
16. In respect of The Pensioners/Family Pensioners whose pension has not undergone revision as per G.O.(P) No.180/06/Fin. dated 18.04.2006 and are drawing the Pension/Family Pension as per pension revision 1997, and in respect of Pensioners/Family Pensioners coming under UGC/AICTE/Medical Education Schemes whose pension has not undergone revision as per G.O.(P) No.81/07/Fin.dated 28.02.2007 or G.O.(P) No.84/07/Fin. dated 01.03.2007, the Dearness Relief will be sanctioned as follows .
| Date of effect | Percentage increase of Dearness Relief | Revised Dearness Relief payable |
| 01.01.2010 | 14% of Pension/ Family Pension | 137% of pre revised Pension/ Family Pension |
This will be applicable only till such time as the date of effect of option for Pension Revision 2004, after which the Dearness Relief payable will be as indicated in para 12 above.
17. The revised Dearness Relief due from 01.01.2010 @ 14% along with the arrears up to July, 2010 will be released in cash along with the pension of August,2010. Payment of Dearness Relief involving fraction of a rupeed shall be rounded off to the next higher rupee.
By Order to the Governer.
ISHITA ROY,
Secretary, Finance (Expenditure)
Original Copy