Government of
India
Ministry of
Finance
Department of
Expenditure
New Delhi, the
4th November, 2016.
OFFICE
MEMORANDUM
Subject: Recommendations of the Seventh Central Pay Commission
— Decision of Government relating to grant of Dearness Allowance to Central
Government employees — Rates effective from 1.1.2016.
The undersigned is directed to say
that consequent upon the decision taken by the Government on the
recommendations of the Seventh Central Pay Commission relating to Dearness
Allowance, the President is pleased to decide that the Dearness Allowance (DA)
to all categories of Central Government employees shall be admissible at the
rate of 2 percent of basic pay per month, w,e.f.01.07.2016.
2. The revised pay structure
effective from 01.01.2016 includes the Dearness Allowance of 125% sanctioned
from 01.01.2016 in the pre-revised pay structure. Thus, Dearness Allowance in
the revised pay structure shall be zero from 01.01.2016.
3. The term 'basic pay' in the
revised pay structure means the pay drawn in the prescribed Level in the Pay
Matrix but does not include any other type of pay like special pay, etc.
4. The Government vide Resolution
No. 1-2/2016-IC. dated 25/07/2016 has decided that till a final decision on
Allowances is taken based on the recommendations of the Committee constituted
under the Chairmanship of Finance Secretary & Secretary (Expenditure), all
Allowances will continue to be paid at existing rates.
5, 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).
6. 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.
7. 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
Estimates. In respect of Armed Forces personnel and Railway employees, separate
orders will be issued by the Ministry of Defence and Ministry of Railways,
respectively.
8. In so far as the employees
working in the Indian Audit and Accounts Department are concerned, these orders
are issued in consultation with the Comptroller and Auditor General of
India.
(Annie George
Mathew)
Joint
Secretary to the Government of India
Source : http://finmin.nic.in/the_ministry/dept_expenditure/notification/da/DA01072016E.pdf
