The Rajasthan government on Thursday hiked the dearness allowance (DA) of state employees by 7 per cent, benefiting nearly seven lakh employees and three lakh pensioners and costing Rs 875 crore additional burden to the exchequer.

The DA has been increased from 65 per cent to 72 per cent of the basic pay, effective from July. It will be at par with the DA of the central government employees, according to an official.

The Dearness Relief (DR) for pensioners has also been increased by 7 per cent to 72 per cent of the basic pension from July.

The DA hike would also be applicable to employees of Panchayat Samitis and Zila Parishads.

Arrears on account of the increased DA from July to September will be credited in GPF accounts of the employees, while hiked DA would be paid in cash from October 1, 2012, the official said.

The increased DR would be paid to the pensioners and family pensioners in cash.

Earlier this week, the Centre hiked DA by 7 per cent to 72 per cent for its employees and pensioners, effective July.

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By Speed Post

F.No.1-1/2010-TS.I
Government of India
Ministry of Human Resource Development
Department of Higher Education
Technical Section - I
*****

Shastri Bhawan, New Delhi
Dated :23rd September,2010.

To
The Director,
Indian Institute of Technology,
Bombay, Delhi, Kanpur, Khargapur, Madras, Guwahati, Roorkee,
Bhubaneswar, Gandhinagar, Hyderabad, Indore, Jodhpur, Mandi
Patna, Ropar

Sir,

I am hereby directed to inform you that after due consideration the Ministry has taken the following decisions with regard to grant of TA/DA and payment of special allowance :-

A. Grant of special allowance. Dy. Directors/Wardens etc.

Keeping in view the Special Allowance of Rs.4000/- prescribed for Pro- Vice Chancellor, Ministry has suggested vide it is letter dated 9th March,2010 that the Dy. Directors may be paid a monthly special allowance of Rs.4000/- per month. Accordingly, it has been felt that the honorarium for Deans, Wardens etc. may be suitably revised keeping in view the existing norms. Accordingly, honorarium/special allowances in respect of Dy. Directors, Deans, Wardens etc. will be as under:-

	Existing	Proposed revision
Dy.Director	Rs.1000/ p.m.	Rs.4000/- p.m.
Deans	Rs.900/ p.m.	Rs.3500/- p.m.
Wardens	Rs.800/ p.m.	Rs.2500/- p.m.
Assoc./Asstt. Wardens	Rs.500/ p.m.	Rs.2500/- p.m.

B. Eligibility for TA/DA with reference to Academic Grade Pay:

The recommendation with regard to the question of equivalence of Academic Grade Pay with Grade Pay for the purpose of determining the eligibility for TA/DA and other benefits also requires a re-look. Even though acadehic grade pay has been fixed slightly at a higher level than the grade pay fixed for similar grade of Central Government employees, the entitlement for TA/DA and other allowances would be governed by the provision of the CCS (RP) Rules,2008 as per the TNDA entitlement for corresponding Grade Pay. Accordingly, the following mapping of academic grade pay with grade pay is required to be followed for the purpose of determining eligibility for TA/DA and other allowances:

Sl.No.	Academic Grade Pay	Equalent Grade Pay for TA/DA/Other Allowances
1	Rs.6000 & Rs.7000/-	Rs.6600/-
2	Rs.8000/-	Rs.7600/-
3	Rs.9000/-	Rs.8700/-
4	Rs.9500/-	Rs.8900/-
5	Rs.10000 / 10500/-	Rs.10000/-

C. HAG Scale of Rs.67,000 - 79,000/- :

A new HAG scale of Rs.67,000-79,000 has been introduced in place of Grade Pay of Rs.12,000/-. Accordingly, the Grade Pay of Rs.12,000/- does not any more exist .

The conditions for moving to the new HAG scale will remain exactly the same as the movement from AGP of Rs.10,500/-to AGP of Rs.12,000/-. Further, as indicated in this Ministry's letter of even number, dated 18.8.2010, this will have prospective effect from the date of issue of orders regarding revision of scales of pay, i.e. 18.8.2009.

This issues with the approval of Secretary (HE).

Yours faithfully

(Pratima Dikshit)
Director

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

New Delhi, the 29th 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 5th CPC.

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

The undersigned is directed to refer to this Department’s OM. of even No dated 31st March,2010 revising the Dearness 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 5th 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 3rd 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

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GOVERNMENT OF INDIA
MINISTRY OF RAILWAYS
(RAILWAY BOARD)

S.No.PC-VI/227

RBE.No. 139/2010

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

New Delhi, dated 22.9.2010.

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 1st 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.

(Hari Krishan)
Director Pay Commission II
Railway Board

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

New Delhi,the 22nd September,2010

OFFICE MEMORANDUM

Subject: Payment of Dearness Allowance to Central 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 26th 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 1st July 2010.

2 The provisions contained in paras 3, 4 and 5 of this Office Memorandum No.1(3)/2008 29th 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 to 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.

(Anil Sharma)
Under Secretary to the Government of India

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Around 8.8 million central government employees and pensioners came in for a double, pre-festive bonanza with the government raising their dearness allowance to 45 per cent Thursday, a day after hiking the interest rate on the provident fund by 100 basis points. The decision to hike the dearness allowance by ten per cent was taken in an union cabinet meeting chaired by Prime Minister Manmohan Singh, said an official spokesperson.

The decision to raise the dearness allowance over the basic pay from 35 to 45 per cent to compensate the rising prices will cost the exchequer an additional Rs.9,303.2 crore per annum, the spokesperson said, adding the new allowance would come into effect from July 1, 2010.

The burden during the current fiscal has been estimated to be Rs.6,202.1 crore, she said, adding: "Increase in allowance is as per the formula based on the recommendations of the Sixth Pay Commission."

Inflation stood at 8.5 per cent in August, with food inflation hovering above 15 per cent, as per the new wholesale price index, with the base year now shifted to 2004-05 from 1993-94 and as many 241 new items added to the basket of commodities to asses the benchmark index.

The central government has over 5 million employees and around 3.8 million pensioners, said the spokesperson.

The increase in DA comes ahead of the Dussehra and Diwali festivals in October and November, respectively.

Source : Hindustan Times

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