Expected Dearness Allowance

Expected Dearness Allowance from Jan 2016

 November 7, 2015  Maha  DA 2016, DA FOR cg employees, DA ORDERS,DEARNESS ALLOWNCE Edit Post

Expected Dearness Allowance from Jan 2016 – Gets carefully scrutinized by the 7th Central Pay Commission

“Expected DA Jan 2016” gets carefully scrutinized by the 7th Pay Commission

“This time, it is not just the employees, but the members of the 7th Pay Commission too who are very eager to know about the Dearness Allowance from January 2016. “

‘Expected DA January 2016‘ has the honour of making not just the Central Government employees and pensioners curious; it has even got the 7th Pay Commission on the list of eagerly waiting audience.

It is a well-known fact that Central Government employees love to read all kinds of information, analyses, orders, and predictions about the Dearness Allowance. Here are our fact- and trend-based predictions for the additional Dearness Allowance which will be announced from 01.01.2016.

Calculation of DA : The Government of India presently calculates the level of inflation for purposes of grant of dearness allowance to Central Government Employees on the basis of the All India Consumer Price index Number for Industrial Workers (2001=100) (AICPI). The twelve monthly average of the AICPI (2001 base) as on 1st January and 1st July of each year is used for calculating the Dearness Allowance (DA).

Each month, the Central Government’s Labour Bureau releases price-related data called the CPI (IW) on Base Year 2001=100. 78 important cities and towns from all over the country were selected and the fluctuations in prices of essential commodities in all these places are noted. Based on these data, the points, abbreviated as AICPIN, are calculated. The Pay Commission will, in its report, explain in detail how the DA is calculated based on these statistics, known as the ‘DA Determination Formula.

The Dearness Allowance of not just the Central Government employees, but also the state government employees, is being paid as per the method prescribed by the 6th Pay Commission. The DA calculation method was implemented from January 2006 and will continue to be in effect for ten years, until December 2015. This DA determination method comes to an end now due to the constitution of the 7th Pay Commission.

Implementation of 7th CPC : The 7th Pay Commission is expected to submit its recommendations to the government before December 2015. Its recommendations are expected to be implemented from January 2016 onwards.

Dearness Allowance after 1.1.2016 : After 01.01.2016, Dearness Allowance will be issued based on the prices of essential commodities, as per the method recommended by the 7th Pay Commission. For example, the 6th Pay Commission’s recommendations were implemented from January 2006 onwards. The DA for the months of January 2006 to June 2006 was not paid. DA was issued only from the month of June 2006.

DA Calculation Method of the 7th Pay Commission : Successive Pay Commissions have made changes to the DA formula, suggesting their own methodology for determining the quantum and frequency. The 7th Pay Commission will also expected to recommend a different methodology to determine the DA.

Seventh CPC is planning

Central Government employees.

 November 5, 2015  Maha  7th pay commission Edit Post

Seventh CPC is planning to bring about a dramatic change in the retirement age of .!

Can the 7th Pay Commission recommend the lowering of retirement age for Central Government employees?

“The unconfirmed information says that the 7th Pay Commission is planning to bring about a dramatic change in the retirement age of Central Government employees.”

Yet another news story about the retirement age of Central Government employees surfaced yesterday. The reputed English news website of India Today featured a special article yesterday about the 7th Central Pay Commission. In the article, the 7th Pay Commission is likely to reduce the retirement age to 55 or on the completion of 33 years, whichever comes first.

This has raised the question in the minds of many if the Pay Commission has the authority to recommend the reducing of retirement age.

The Pay Commission has all the authority to present its explanations and recommendations about changes in the retirement age of Central Government employees. But, the Centre has the discretionary powers to either accept or reject the recommendations. The fifth Pay Commission recommended that the retirement age be increased. Based on the recommendation, the government increased the retirement age from 58 to 60, in May 1998(Click to view the Dopt Order). The Third Pay Commission also recommended the date of retirement of Central Government employees. The commission recommended that the retirement effect from the afternoon of the last day of the month in which the employee concerned attains the age of superannuation instead of the afternoon of the actual date of his superannuation(Click to view the Dopt Order). But, for now, there’s no confirmed news about the recommendation of reduction in retirement age.

Initially it was 60 years of age or 33 years of service, then it changed as 58 or 33 years service and now it becomes as 55/33 years. Though many are ready to even accept the changes in retirement age, what is unpalatable for them is the idea of linking the years of service with their age. If a talented employee joins the Central Government services at a very young age, then he is likely to lose up to seven years of service tenure.

All the government employees, especially those above the age of 40, are vehemently opposing the idea. The questions they are putting forth are 

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