Payment of Dearness Allowance to Central Government employees-Revised rates effective from 1-7-2010

Payment of Dearness Allowance to Central Government employees-Revised rates effective from 1-7-2010-Finance Ministry Order

Government of India
Ministry of Finance
Department of Expenditure

New Delhi,the 22nd September,2010

OFFICE MEMORANDUM

Subject:Payment of Dearness Allowance to Central Government employees-Revised rates effective from 1-7-2010

The undersigned is directed to refer to this ministry’s Office Memorandum No.1(3)/2009-E-II(B) dated 26th March.2010 on the subject mentioned above and to say that the president is pleased to decide that the Dearness Allowance payable to central government employees shall be enhanced from the existing rate of 35% to 45% with effect from 1st July 2010.

2 . The provisions contained in paras 3,4 and 5 of this Office Memorandum No.1(3)/2008 29th August,2008 shall continue to be applicable while regulating Dearness Allowance under these orders

3. The additional instalment of Dearness Allowance payable under these orders shall be paid in cash ro all Central Government employees.

4.These orders shall also apply to the civilian employees paid from the Defence Services Estimates and expenditure will be chargeable to the relevant head of the Defence Services Estimates.In regard to Armed Forces Personnel and railway employees separate orders will be issued by the Ministry of Defence and Ministry of Railways, respectively.

5. In so far the persons serving in the Indian Audit an Accounts Department are concerned, these orders issue after consultation with the Comptroller and Auditor General of India.

(Anil Sharma)
Under Secretary to the Government of India

view the Office Memorandum

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7 thoughts on “Payment of Dearness Allowance to Central Government employees-Revised rates effective from 1-7-2010”

  1. It is said that Govt grants Dearness Allowance to its staff and pensioners for full nutralization of price index. It is incorrect. Full nutralization happens only if all the relevant items of daily consumption and usage are taken into account while working out the price index and secondly the enhancement of DA should be effective from the middle of the six monthly period covered for the calculation and not after the six relevant months period. Because by the time the enhanced DA is made effective, the price index shoots up further. That increase of price index is never nutralized. In other words, the nutralization happens only 50% and not 100% as the impression created is. That too provided the system of working out the consumer price index is made realistic. I hope this will receive the attention of all concerned.

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