Ministry of Finance revises the rate for grant of dearness allowance to Central Government employees

Oct 15, 2019 | by Avantis RegTech Legal Research Team

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The Department of Expenditure on October 14, 2019, has issued an Office Memorandum regarding the revised rates for grant of dearness allowance to Central Government employees.

The Dearness Allowance payable to Central Government employees has been enhanced from the existing rate of 12% to 17% of the basic pay with effect from July 01, 2019. The Dearness Allowance will continue to be a distinct element of remuneration and will not be treated as pay within the ambit of Fundamental Rule 9(21).  As per the revised pay structure, basic pay means the pay drawn in the prescribed Level in the Pay Matrix as per 7th CPC recommendations accepted by the Government and does not include any other type of pay like special pay, etc. 

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 are applicable to civilian employees paid from the Defence Services Estimates and the expenditure will be chargeable to the relevant head of the Defence Services Estimates. Further, in respect of Armed Forces personnel and Railway employees, separate orders will be issued by the Ministry of Defence and Ministry of Railways, respectively and in case of Indian Audit and Accounts Department they will be issued with the concurrence of the Comptroller and Auditor General of India.

[Office Memorandum No. 1/3/2019-E- II (B)]



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