Finance Ministry’s Department of Expenditure (DoE) issued the notification for Union Cabinet’s September 28 decision to hike Dearness Allowance from 34% to 38%. The Cabinet on September 28 also announced a similar hike in dearness relief (DR) for pensioners.
The DoE issued the
office memorandum on October 3, formalising the implementation of the recent 7th Pay Commission rate hike.Here are some important highlights of the DoE notification that central government employees and pensioners must know:
The hike of 4% in dearness allowance will be applicable to the basic pay of government employees. The new rate of 38% will be applicable from July 1, 2022.
- The term ‘Basic Pay’, for the purpose of calculation of DA, in the new structure means the salary drawn as per applicable Level in the Pay Matrix as prescribed by the 7th Pay Commission recommendations accepted by the government. Basic Pay excludes any other emoluments such as special pay etc.
- The Dearness Allowance will continue to be a distinct element of remuneration and will not be treated as pay within the ambit of FR 9(21).
- The payment on account of Dearness Allowance involving fractions of 50 paise and above may be rounded to the next higher rupee and the fractions of less than 50 paise may be ignored.
- “These orders shall also apply to the civilian employees paid from the Defence Services Estimates and the expenditure will be chargeable to the relevant head of the Defence Services Estimate, In respect of Armed Forces personnel and Railway employee, separate orders will be issued by the Ministry of Defence and Ministry of Railways. respectively,” the notification read.
- In so far as the persons serving in the Indian Audit and Accounts Department are concerned, these orders are issued in consultation with the Comptroller and Auditor General of India, as mandated under Mice 148(5) of the Constitution of India, the DoE office memorandum concluded.
