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CABINET APPROVED 10% DEARNESS ALLOWANCE HIKE FOR CENTRAL GOVERNMENT EMPLOYEES AND PENSIONERS


DEARNESS ALLOWANCE IS EQUIVALENT TO BASIC PAY

CABINET COMMITTEE APPROVED 10% DEARNESS ALLOWANCE HIKE FOR CENTRAL GOVERNMENT EMPLOYEES AND PENSIONERS



DEARNESS ALLOWANCE IS EQUIVALENT TO BASIC PAY

Basic Pay= 100% Dearness Allowance

On 28.02.2014, the Cabinet Committee announced that it had given its consent to 10% Additional Dearness Allowance to all Central Govt Employees and Pensioners with effect from 1.1.2014.

This took Dearness Allowance to 100%.

Now, Central Government employees will be given 100% Dearness Allowance from the preceding date of 01.01.2014. But the Finance Ministry has not issued any relevant orders yet. We are hoping that the orders will be given before the end of this month.

The 100% Dearness Allowance from 01.03.2014 will be given along with the salary. The Dearness Allowance of January and February will be given as arrears. The hike is applicable for Central Government pensioners too.

In the current scenario, the Dearness Allowance is equal to Basic Pay. 

Let us look at the Dearness Allowance trends in the past… 

The growth of Dearness Allowance began on the basis of the 5th CPC, from 01.01.1996 onwards. It increased steadily and reached 50% on 01.07.2002.

On 01.04.2004, 50% Dearness Allowance was merged to the basic pay. The progression continued and on 01.07.2008, it reached 54%.

Click to view the image given below - Finance Ministry DA Merger order…

A significant growth in 12 years was seen in the order issued by the Finance ministry on 13.04.1999, in which the Government agreed to increase the Dearness Allowance from 22% to 32%, with effect from 01.01.1999. This was a 10% increase.

Click to view the image given below - Finance Ministry order…





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