The Union Cabinet committee  today decided to Enhance the Rate of Dearness Allowance by 7% to all the Central Government employees.

Dearness Allowance (DA) will be enhanced from 51% to 58% w.e.f.July -2011.

Release of additional installment of dearness allowance for this year to Central Government employees and Dearness Relief to Pensioners from July-2011 is to compensate the price hike of essential commodities.

The revised rates of Dearness Allowance from 1.7.2011 to 31.8.2011 may be paid in cash as arrears and for the month of September 2011 may be disbursed with the salary.

The enhancement of Dearness Allowance is in accordance with the accepted formula, which is based on the recommendations of the 6th Central Pay Commission.

Government Order from Finance Department will be published very soon.

Non-Productivity Linked Bonus (ad-hoc bonus) to Central Government Employees for the year 2010-11

Non-Productivity Linked Bonus (ad-hoc bonus) to Central Government Employees for the year 2010-11

Finance Ministry has published an Office Memorandum (No.7/24/2007 /E.III(A)  dated 13th September, 2011) in its website regarding that grant of Non-Productivity Linked Bonus (ad-hoc bonus) to Central Government Employees for the year 2010-11. Non-PLB for the year 2010-11 granted equivalent to 30 days emoluments to the Group ‘C’ and ‘D’ and all non-gazetted employees in Group ‘B’.

The calculation ceiling of Rs.3500 will remain unchanged.

The benefit will be admissible subject to the following terms and conditions as follows…

Only those employees who were in service on 31.3.2011 and have rendered at least six months of continous service during the year 2010-11.

To calculate bonus for one day, the average emoluments in a year will be divided by 30.4 (average number of days in a month). This will thereafter be multiplied by the number of days of bonus granted. For example, Non-PLB for thirty days would work out to Rs.3500 x 30 / 30.4 = Rs.3453.95 (rounded off to Rs.3454).

The casual labour who have worked in offices following a 6 days week for at lest 240 days for each year for 3 years or more (incase of 5 days in a week, 206 days in each year for 3 years or more).

To calculate the bonus for casual labur will be Rs.1200 x 30 / 30.4 = Rs.1184.21 (rounded off to Rs.1184).

All payments will be rounded off to the nearest rupee.

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Employees of Autonomous Bodies to get Ad-hoc Bonus

Employees of Autonomous Bodies to get Ad-hoc Bonus

Earlier the Central Government has announced to grant of Non-productivity Linked Bonus (Ad-hoc bonus) to Central Government Employees for the year 2010-11. Now it may be extended with some terms and conditions to the employees of Autonomous Bodies.

An important another office memorandum[No.7/24/2006 E-III (A)] issued by the Finance Ministry today related to Non-PLB (Ad-hoc bonus). The Government has decided that the Non-Productivity Linked Bouns (Ad-hoc) may be extended to the employees of autonomous bodies, party and fully funded by the Central Government.

The detailed order is availble in the Finance Ministry website (

Minister promises for 78 days bonus for Railway employees

Railways is planning to give Productivity Linked Bonus (PLB) equivalent to 78 days' wages to its 12 lakh employees.

In this connection, Railway Minister Mr.Dinesh Trivedi assured in a meeting with federations that 78 days’ productivity-linked bonus (PLB) would be given to employees in the grade pay ranging from Rs 1,800 to Rs 4,600.

The sanction of Bonus would result in additional burden of Rs 600-700 crore for Railways.

During previous year, Railway employees were granted bonus for 77 days. Out of total employees of 13.26 lakh railway employees, around 1.26 lakh employees will not be covered by productivity linked bonus on account of ceiling of pay received.

It is estimated that if PLB is granted as per the above calculations, the maximum amount of bonus an employee can get will be around Rs.8900 as the maxium bonus that can be sanctioned for 30 days is fixed at Rs.3500 in the bonus Act.

M Raghavaiah, General Secretary of National Federation of Indian Railwaymen, said, "We had demanded 80 days bonus this year because Railways have carried more loadings than last year. Loadings have gone up from the 876 million tonnes (MT) in 2010 to 924 MT till March 2011."

The union leader has also added that "It is true that Railways' financial position is not good. But its employees should not be deprived of their due because of that. We have suggested passenger fare hike to improve finances."

Source: Business Today

DA increase of 7% likely to be approved by Cabinet

The Cabinet may on Thursday raise dearness allowance (DA) for central government employees and dearness relief (DR) for pensioners by 7 percentage points to 58% of the basic pay/pension.

The last hike in DA was in March when the government increased it by 6 percentage points. The Cabinet is expected to take a decision in this regard on Thursday, sources said. The Cabinet is also expected to clear a proposal for giving productivity linked bonus to Railway employees for the year 2010-11, sources added.

With the proposed DA hike, the basic pay of the central government employees (or pensioners as the case may be) would go up by 36% over a two-year period. The hikes will be implemented from July 1, 2011. The combined impact on the exchequer on account of both DA and DR increase between January 2009 and January 2011 is estimated to have crossed Rs 16,000 crore. The measure is set to provide relief to a total of around 5 million central government employees and around 4 million pensioners.

The change in DA, which is linked to the consumer price index, has lead to a further change in other allowance structure since rate breached the 50% of basic pay mark in March. For instance, payments like conveyance allowance and children’s education allowance have also gone up by 25%. This hike is in accordance to the formula given in the sixth pay commission report which says: “The rates of these allowances will be increased by 25% every time the DA payable on revised pay scales goes up by 50%.” As a result, there will also be an increase in the special compensatory allowance for the central government employees posted in remote areas such as the north-east and Jammu & Kashmir. Their special allowance also goes up by 25% the moment the 50% trigger was breached. The increased DA and DR are expected to help the households of central government employees and pensioners who are already exposed high inflation.

The Cabinet is also expected to clear the Delhi-Mumbai Industrial Corridor project being implemented in collaboration with Japan at Thursday’s meeting. The project was conceived five years ago and envisages setting up of industrial corridor along the Delhi-Mumbai stretch. It will comprise seven new cities, nine industrial parks, three ports, six airports and a 1,483 km high-speed rail and road line will be developed as a trading hub. The States covered by the project include Uttar Pradesh, Haryana, Rajasthan, Gujarat, Maharashtra and Madhya Pradesh.

The Cabinet will also take up for consideration the national manufacturing policy that aims at raising contribution of manufacturing in GDP from 16% to 26% by 2025 and creating 100 million jobs in next 10 years. Manufacturing sector contributes over 80% to the overall industrial production.

Source: The Financial Express

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