Enhancement of various allowances by 25% from 01-01-2011 owing to over 50% increase in Dearness Allowance..
Enhancement of various allowances by 25% from 01-01-2011 owing to over 50% increase in Dearness Allowance...
F.No.5-06/2011-PAP
GOVERNMENT OF INDIA
MINISTRY OF COMMUNICATIONS AND I.T.
DEPARTMENT OF POSTS
[ESTABLISHMENT DIVISION]
DAK BHAWAN, SANSAD MARG, NEW DELHI-110116
THE 24th JANUARY, 2012
OFFICE MEMORANDUM
SUBJECT : ENHANCEMENT OF VARIOUS ALLOWANCES BY 25% FROM 1.1.2011 OWING TO OVER 50% INCREASE IN DEARNESS ALLOWANCE - REG.
The undersigned is directed to say that a number of references and queries have been received in this Directorate from various Circles seeking clarifications in respect of increase of various allowances consequent upon increase in the Dearness Allowance beyond 50% w.e.f. 1st January, 2011. The issue has been examined in consultation with Ministry of Finance (Department of Expenditure). It may be recalled that, on implementation of the recommendations of the 6th Central Pay Commission, necessary orders in respect of various allowances and certain advances were issued by the Government. Some of these orders inter alia stipulated that such Allowances/advances shall automatically increase by 25% whenever Dearness Allowance goes up by 50%.
2. It is, therefore, clarified that such orders in respect of the allowances and advances, which provide for their automatic increase by 25% whenever Dearness Allowance goes up by 50%, do not require further confirmation/clarification for complying with the said stipulations.
3. However, such Allowances and Advances are mentioned below for ready reference of all concerned :
1. Children Education Allowance including Hostel Subsidy, etc.
2. Special Allowance
3. Cash Handling Allowance
4. Washing Allowance
5. Split Duty Allowance
6. Bad Climate Allowance
7. Special Compensatory (Remote Locality) Allowance
8. (a) All components of Daily allowance on tour,
(b) Mileage Allowances for road and bicycle journeys on tour
9. Special Compensatory (Hill Area) Allowance
10. Special Comp. Scheduled Tribal Area Allowance
11. Project Allowance
12. Fixed Conveyance Allowance
13. Cycle Maintenance Allowance
14. Special Allowance for Child care for women with disabilities
15. (a) Advance for purchase of Bicycle
(b) warm Clothing Advance
(c) Festival Advance
(d) Natural Calamity Advance
16. Desk Allowance
This issues with the concurrence of Integrated Finance Wing vide their diary No.28/FA/12/CS dated : 24/01/2012
sd/-
(S.V.RAO)
ASSISTANT DIRECTOR GENERAL (ESTT.)
Source: www.indiapost.gov.in
[http://www.indiapost.gov.in/Pdf/F.No.5-06-2011-PAP.pdf]
Comments
KIND ATTENTION RESPECTED FINANCE MINISTER ,SIR
1THE BLUNDER ,WHO SHOULD BE MADE ACCOUNTABLE FOR CREATING PROBLEMS FOR EX SERVICE MEN & SERVING PERSONAL
2.IN 5TH CPC 50%DA WAS MERGED IN BASIC PENSION AS DP ONCE IT CROSSED 50%
3. IN 6TH CPC WHEN DA CROSSED 50%, VARIOUS ALLOWANCES WERE HIKED BY 25 % OF SERVING PERSONS, BUT DA WAS NOT MERGED AS DP FOR SERVING & PENSIONERS
4.THE MINISTER OF FINANCE MENTIONED IN LOK SABHA[DETAILS APPENDED BELOW] THAT DA ON CROSSING SLAB OF 50% IS NOT BEING MERGED AS DP, BECAUSE IT IS NOT MENTIONED IN 6TH CPC
5.THE MINSTER OF FINANCE SHOULD HAVE SWIFTLY ISSUED AMENDMENT FOR 50% DA MERGER AS DP THEN HE WOULD HAVE EARNED GOOD WILL OF ALL & UPA.
6.IT IS GREAT INJUSTICE TO PENSIONER & SERVING.
7.HOW IT IS JUSTIFIED THAT ON ONE SIDE YOU INCREASE ALL ALLOWANCES AS 25% BUT FORGET TO TAKE CARE OF MOTHER OF ALL ALLOWANCES>DA MERGER AS DP
9. SERVING/PENSIONER SHOULD BE GIVEN THE RIGHT FULL DUE TO THEM IN A DEMOCRATIC SET UP
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No proposal to merger of dearness allowance with Basic Pay
GOVERNMENT OF INDIA - MINISTRY OF FINANCE - LOK SABHA
UNSTARRED QUESTION NO 859 / ANSWERED ON 25.02.2011
DA OF CENTRAL GOVERNMENT EMPLOYEES
859. Smt. P. JAYA PRADA NAHATA
NEERAJ SHEKHAR
YASHVIR SINGH
Will the Minister of FINANCE be pleased to state:-
(a) Whether Government has plans to increase dearness allowance effective from January, 2011 for Central Government employees with a rate that commensurate with the inflationary trends and plights of working class in the past few months;
(b) If so, the details thereof and if not, the reasons therefore;
(c) Whether Government has any proposals to declare DA as Dearness Pay when it will cross 50 per cent, as it was done during the 5th Pay Commission;
(d) If so, the details thereof; and
(e) If not the reasons therefore?
ANSWER
MINISTER OF THE STATE IN THE MINISTRY OF FINANCE (SHRI NAMO NARIAN MEENA)
(a)&fb): Increase in Dearness Allowance payable to Central Government employees with effect from January, 2011 will be worked out on basis of accepted formula which is based on the recommendation of 6th Central Pay Commission.
(Ch (d) & (e): No proposal to declare DA as dearness pay, after DA crosses 50% is under consideration of the Government. The Sixth Pay Commission did not recommend merger of dearness allowance with Basic Pay at any stage. Government accepted this recommendation vide Government of India Resolution dated 29.8.2008.
COL LAMBA
KIND ATTENTION RESPECTED FINANCE MINISTER ,SIR
1.DA IS GIVEN BY YOUR GOOD OFFICE TO FIGHT INFLATION
2.BUT DA IS SANCTIONED ON WHOLE SALE INDEX ,WHERE AS IT SHOULD BE ON RETAIL INDEX ,AS EMPLOYEES FACE WRATH OF RETAIL INFLATION . THE RETAIL INDEX IS REQUIRED TO BE NEUTRALISED TO FIGHT INFLATION.
3.SIR,THIS WHOLE SALE DA GRANTED IS BEING FURTHER TAXED BY INCOME TAX DEPARTMENT. THUS DILUTING THE DA FURTHER.
4. TO ADD TO AGONY ONE HAS TO PAY FURTHER EDUCATION CESS ON IT
5.WHEN DA IS MERGED WITH DP THEN ONE HAS TO PAY HIGHER SLAB OF INCOME TAX ON THIS DA SANCTIONED.
6.ONE GETS ACTUALLY ABOUT 55% OF DA SANCTIONED IN HAND TO FIGHT ACTUAL INFLATION.
7.KINDLY INCLUDE IN COMING BUDGET.
A] FIRSTLY: NO INCOME TAX SHOULD BE CHARGED ON DA, AS IT WAS BEING DONE EARLIER YEARS.
B]SECONDLY: DA SHOULD BE PAID ON RETAIL INDEX BASIS OF INFLATION AS END USER ARE RETAILERS .
WITH REGARDS & BEST WISHES
col lamba
Central Administrative Tribunal
Principal Bench
1. OA No.0655/2010
With
2. OA No.3079/2009
3. OA No.0306/2010
4. OA No.0507/2010
New Delhi this the 1st day of November, 2011.
extract appended below
The fixation as per above will be subject to the provision that the revised pension, in no case, shall be lower than 50% of the(sum of the) minimum of the pay in the pay band plus (and) the grade pay (thereon) corresponding to the pre revised pay scale from which the pensioner had retired.
The Pension Calculated at 50% of the [sum of the] minimum of the pay in the pay band [and the grade pay thereon corresponding to the pre-revised pay scale] plus grade pay would be calculated (i) at the minimum of the pay in the pay band (irrespective of the pre-revised scale of pay plus) the grade pay corresponding to the pre-revised pay scale. the Government is accepted
30. In view of what has been stated above, we are of the view that the clarificatiory OM dated 3.10.2008 and further OM dated 14.10.2008 (which is also based upon clarificatiory OM dated 3.10.2008) and OM dated 11.02.2009, whereby representation was rejected by common order, are required to be quashed and set aside, which we accordingly do. Respondents are directed to re-fix the pension of all pre-2006 retirees w.e.f. 1.1.2006, based on the resolution dated 29.08.2008 and in the light of our observations made above. Let the respondents re-fix the pension and pay the arrears thereof within a period of 3 months from the date of receipt of a copy of this order. OAs are allowed in the aforesaid terms, with no order as to interest and costs.
(Dr. Veena Chhotray) (M.L. Chauhan) (V.K. Bali)
Member (A) Member (J) Chairman