Payment of Dearness Allowance to Railway employees - Revised rates effective from 01.07.2010

GOVERNMENT OF INDIA
MINISTRY OF RAILWAYS
(RAILWAY BOARD)

RBE.No. 139/2010
New Delhi, dated 22.9.2010.

S.No.PC-VI/227
No.PC-VI/2008/1/7/2/1

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 1^st 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.

s/d
(Hari Krishan)
Director Pay Commission II
Railway Board

Source: AIRF

DA from July 2010 : AICPIN for the month of June-2010 published by Labour Bureau

Just now All India Consumer Price Index Number for Industrial Workers (CPI-IW) on base 2001=100 value has been released by Labour Bureau. The value of the index stands at 174 level, so in this situation, the Dearness Allowance for Central Government Employees will be rised 10% and total of 45% (35% + 10%).

Press Release

Consumer Price Index Numbers for Industrial Workers on Base 2001=100
CPI(IW) Base 2001=100 Monthly Index Letter - JUNE 2010

MAY 2010	JUNE 2010
172	174

ALL INDIA CONSUMER PRICE INDEX NUMBERS FOR INDUSTRIAL WORKERS
ON BASE 2001=100 FOR THE MONTH OF JUNE, 2010

1. All India Consumer Price Index Number for Industrial Workers (CPI-IW) on base 2001=100 for the month of June, 2010 increased by 2 points and stood at 174 (one hundred and seventy four).

2. During June, 2010, the index recorded an increase of 8 points in Varanasi centre, 6 points each in Quilon and Giridih centres, 5 points in 4 centres, 4 points in 8 centres, 3 points in 13 centres, 2 points in 17 centres and 1 point in 19 centres. The index decreased by 1 point each in Ludhiana and Ghaziabad centres, while in the remaining 12 centres the index remained stationary.

3. The maximum increase of 8 points in Varanasi centre is mainly due to increase in the prices of Rice, Wheat, Fresh Milk, Onion, Vegetable and Fruit items, Electricity Charges, Bus Fare, Tailoring Charges, etc. The increase of 6 points in Quilon centre is due to increase in the prices of Rice, Fish Fresh, Onion, Vegetable and Fruit items, Cigarette, Tailoring Charges, etc. and in Giridih centres it is due to increase in the prices of Mustard Oil, Fish Fresh, Turmeric Powder, Vegetable and Fruit items, Soft Coke, etc. However, the decrease of 1 point each in Ludhiana and Ghaziabad centres is due to decrease in the prices of Onion, Vegetable items, Sugar, etc.

4. The indices in respect of the six major centres are as follows :

1. Ahmedabad – 169
2. Bangalore –182
3. Chennai – 162
4. Delhi – 159
5. Kolkata -172
6. Mumbai -171

5. The point to point rate of inflation for the month of June, 2010 is 13.73% as compared to 13.91% in May, 2010.

6. The CPI-IW for July, 2010 will be released on the last working day of the next month, i.e. 31st August, 2010.

Labour Bureau

EXPECTED DEARNESS ALLOWANCE FROM JULY - 2010 FOR CENTRAL GOVERNMENT EMPLOYEES

The second installment for this year (2010) of Dearness Allowance (DA) is awaited with lots of expectations…

The main expectation among lakhs of Central Government Employees will be announcement of the next additional installment of Dearness Allowance (DA) for this year….

The reasons are many…

Employees getting only 3% annual increment for one year and those who are getting promotion, they are also getting only Grade Pay difference + 3% annual increment after waiting for several years. But nowadays employees are getting Dearness allowance percentage much than annual increment due to all commodities price increase.

Dearness Allowance is an essential component of salary, it is based on monthly All India Consumer Price Index for Industrial Workers (Base year 2001-100) announced by the Labour Bureau – Government of India from time to time. After 6th CPC only the Government directed that the Dearness Allowance has to be calculated based on AICPIN with the base year 2001-100.

We have clearly stated in our site that the Dearness Allowance (DA) from Jan-2010 to Jun-2010 should be 8% with appropriate proof. Some had doubt about this, but the Government accepted and the 8% Dearness Allowance (DA) was announced (19.03.2010) from Jan-2010.

As of now, the situation demands increase in Dearness Allowance (DA) from Jul-2010 to Dec-2010 should be 44% and it will confirmed only when the All India Consumer Price Index (AICPIN) for May and June to be published. But when the index value 170 decreases to 165 or low for the next two months, the Dearness Allowance (DA) will be 8%. If it increases from 170 to 173 and above, there is a chance that the Dearness Allowance (DA) shoots up to 10%. Till now, we can conclude that additional Dearness Allowance (DA) will be 9% because there is no relief in the prices of essential commodities. But the Government will be strictly monitoring the situation and control prices that the AICPIN (All India Consumer Price Index Number for Industrial Workers (CPI-IW) on base 2001=100) value doesn’t go up.

In the next year, when DA crosses 50% all allowances will get a hike up to 25% as per the 6th CPC recommendations. This will bring some relief to the employees.

The Pensioners, State Government employees and who are all getting pay as per 5th CPC also looks forward eagerly waiting for the announcement of increase in Dearness Allowance (DA).

We have to wait for this announcement for almost two months.

Source: CG Staff News