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Updated: March 1, 2014 02:20 IST

Union Cabinet rolls out benefits package, hikes DA

J. Balaji
Comment (20)   ·   print   ·   T  T  

Just days ahead of the announcement of the Lok Sabha elections, the Union Cabinet on Friday increased the dearness allowance (DA) of Union government employees and dearness relief (DR) of pensioners by 10 per cent of the basic pay, taking the rate to 100 per cent.

It fixed the minimum monthly pension paid by the Employees Provident Fund Organisation at Rs. 1,000. The new rate, effective from April 1, is expected to benefit 28 lakh pensioners.

The Cabinet approved the terms of reference for the Seventh Pay Commission set up to suggest wage and allowance revision.

The increased DA and DR, which will benefit 50 lakh employees and 30 lakh pensioners and family pensioners, will be given with retrospective effect from January 1 in cash, but not before the disbursement of March salary. The decision to increase the amount will cost Rs. 11,074.8 crore a year and Rs. 12,920.6 crore for 14 months from January 2014 to February 2015).

PTI adds:

The government had announced a hike of 10 per cent to 90 per cent in September last year, effective from July 1, 2013.

The new hike in DA would be effective from the January 1 this year.

As per practice, the government uses Consumer Price Index- Industrial Workers data of the past 12 months to arrive at a quantum for the purpose of any DA hike. Thus, the retail inflation for industrial workers between January 1 to December 31, 2013 was used to take a final call on the matter.

According to the provisional data released by government on January 31, the retail inflation for factory workers in December was 9.13 per cent. The revised retail inflation data for December is scheduled to be released on Friday.

An official had said earlier that the preliminary assessment suggests that DA hike will not be less than 10 per cent and would be effective from January 1.

The government also approved the implementation of 1997 pay scale along with increase in the retirement age from 58 to 60 for the employees of Hindustan Machine Tools Limited (HMT).

The cabinet also approved a soft loan of Rs 200 crore for paying salaries to employees of loss-making PSU Indian Telephone Industries (ITI) Ltd.

Some readers are harping on increasing of retirement age .Is it
justified?It is time we think of the younger generation .Let them
work.Let us retire happily !
Unfortunately ,we already have some research Institutes under the Health
Ministry which has retirement age at 62 for certain category of staff
which itself is at once improper.

from:  J.S.Acharya
Posted on: Mar 1, 2014 at 20:08 IST

The media is well informed in all the matters than an average citizen.
then why this hype about this. Is this not a routine affair happening
in January and July every year. Bonus during Pooja, Diwali, Onam such
seasons is another routine matter. When DA rate exceeds , some
percentage of basic, merger with basic, Interim relief for the delay
of Pay commission revision everything routine. the frequent Bank
strikes mainly for this.These employees are entitled for certain
benefits. Pension also is a luxury if you start interpreting.Never
forget, these people were poorly paid all these years. These were the
result of many years of agitations / negotiations.

from:  Gopalan
Posted on: Mar 1, 2014 at 14:22 IST

The News about merger of the DA/DR as given in the box at serial number 1 is wrong and
must be corrected at least in tomorrow's paper. This amounts to spreading rumors by your
esteemed paper just like other News Channels.

from:  Major AM Manohar
Posted on: Mar 1, 2014 at 14:10 IST


These media people are ill informed and lack knowledge about
service conditions of govt. officials. Payment of DA on half yearly
basis as per the accepted formula is a routine feature and has nothing
to do with the polls. They are making undue hue and cry about the
approval of DA by the Cabinet yesterday. This much of DA which is as
per the accepted formula, was also announced in September 2013 and
even in March and September every year as per the agreed formula, was
all these were in view of polls?. DA as per the formula agreed is
also paid to Bank officials and PSU employees on quarterly basis which
is not even known to the public and the Media and it is not given
undue publicity. Govt. officials are doing their duty honestly so
stop this unwarranted hue and cry about payment of their rightlful
dues like DA and don't try of misguide the general public. So first
get be properly informed about the conditions of payment of DA to them
and then resort to reporting.

from:  R.K.Gupta
Posted on: Mar 1, 2014 at 13:01 IST

To say DA increase will have negative impact on economy is looking the coin only from one side.In fact this is the deferred payment to the cost escalation if one can understand, further it has the 2nd effect after the receipt of payment, which psychological, but causes the price rise once again.This vicious cycle will continue till a real time system is evolved without advertisement that causes the secondary effect.

from:  Hardev Singh
Posted on: Mar 1, 2014 at 12:48 IST

The only thing the Congress government does with a fair degree of
certainty is raising the dearness allowance (DA) for its present and
retired staff at periodic intervals. That it has hiked the DA by 10
per cent (from 90% to 100%) now (with effect from January 2014) is a
case in point. This may no doubt benefit (financially) over 80 lakh
people. But one must not be oblivious of the negative impact this
increase may have on the India economy. Now, most of the state
governments and institutions/ organisations in the private sector will
follow suit giving rise to mammoth increase in revenue expenditure,
revenue deficit, fiscal deficit inflationary pressure, etc. on the
economy. Income in this part of the world (especially in the
government sector) commensurate with the cost of living and not
productivity. This is really dangerous!

from:  S. Ramakrishnasayee
Posted on: Mar 1, 2014 at 12:08 IST

The chasm between dearness allowances of the state and Central employees is yawning in many states though they face inflation to the same extent.For example,in Bengal at present DA for state employees’ is only 42% of basic pay as against 100% for Central staff.Again, while the Center has cleared the desk for forming the 7th Pay Commission for its employees and pensioners, Bengal govt has kept its hands off the issue due to financial crunch. Isn't it very unfortunate?

from:  u.k.pal
Posted on: Mar 1, 2014 at 10:46 IST

The media seeems to be ignorant of the fact that these increases
in DA/DR are mandated by the Pay Commission. For no rhyme or
reason the Finance Minister thinks it is his right to announce it after sanction by the Cabinet. The 7th Pay Commission shoulld make it's implementation automatic. In the case of OROP, if the umplementation is delayed and pensionns not paid on May 1, 2014, the Congress will not get the extra votes they are anticipating. A point to note is that if anybody delays paying of tax over Rs.100/- they have to pay interest. But if the Government delays implementation by months on end they do not pay any interest thereon. This should be taken up as a PIL and the Government be forced to give interest for such delays.

from:  S N IYER
Posted on: Mar 1, 2014 at 10:35 IST

DA hike was a mandatory step taken by Central government.But cabinet is
silent on merger of 50% in Basic salary which was suggested by sixth pay
commission. like wise government did not make any consensus on
retirement age from 60 to 62 years.

from:  Sangram Singh Katiyar
Posted on: Mar 1, 2014 at 09:27 IST

What happened for the decision of increasing retirement age from 60 to
62 for central government employees????

from:  Thirumalai
Posted on: Mar 1, 2014 at 08:23 IST

Though the decision of the Govt to raise the DA by another big number to hit the 100% mark
would be welcomed by the the ten million strong in-service and retd (incl this writer),it also
exposes in all it's nakedness the feeble control and directionof the Govt on the economy,and
a possible vulnerability to an imminent,catastrophic collapse.Earlier,a 3% annual increment,
(on an average)was not only an enjoyable event as a reward for a years labour and was
eagerly looked forward to.In contrast, the present bounteous half yearly dispensation only
creates a fictional world of meganumbers,conflating with an economy,which is being driven
more by outside dark forces than by the Govt.I may be wrong and cynical but my perception
is that we may be heading for a disaster if the Govt fails to rein in the exponentially
ascending inflation and to keep the wages steady but continues the present adhocism of
dishing out huge increases every six months as the real solution.Can the 7th CPC find
ananswer?

from:  NarayanaswamyVenkataraman
Posted on: Mar 1, 2014 at 08:18 IST

What happened in deciding raising the retirement age from 60 to 62 for
the central government employees??

from:  Thirumalai
Posted on: Mar 1, 2014 at 08:16 IST

When rising fiscal deficits and widening current account deficits would causing another round of balance of payments crisis, is the pay increase necessary.
can the Election Commission watch & say " we are neither happy or nor happy".

from:  jayaraman
Posted on: Mar 1, 2014 at 08:08 IST

NO ENHANCED RETIREMENT AGE AS MASS YOUR ARE UNEMPLOYED.

from:  s p sawant
Posted on: Mar 1, 2014 at 07:27 IST

It is very confusing for all the Government employees on the issue of DA
merger with Basic Pay. Can 'The Hindu' team please clarified.

from:  Amit Kumar pawan
Posted on: Mar 1, 2014 at 07:23 IST

There is no DA merger- only 10% hike.Please correct your news

from:  Selvarajan
Posted on: Mar 1, 2014 at 03:55 IST

Great going UPA - Bankrupt the nation and empty the treasury before you
leave, so that who ever comes will struggle with your mismanagement.

UPA is like a thief running away from scene of robbery, throwing out a
few bundles of currency to deter the police who are on his tail.

from:  Venkatesh
Posted on: Mar 1, 2014 at 03:02 IST

50 percent of DA will be merged with basic pay. This will also be
announced soon. Very happy news.

from:  Ramamoorthy
Posted on: Feb 28, 2014 at 21:13 IST

when will bee 50% of DA merged with BAsic pay for central governmetn employees

from:  shivakumar
Posted on: Feb 28, 2014 at 20:17 IST

No DA Merger or is it still pending

from:  Joshua
Posted on: Feb 28, 2014 at 19:00 IST
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