Friday, September 11, 2009

THREE CHEERS: 5% increase in DA, second installment of Pay Commission arrear & concession in housing projects…

IN A good gesture for the government employees ahead of the festive season, the Indian Cabinet on Thursday decided to release an additional installment of Dearness Allowance (DA) to all Central government employees and Dearness Relief (DR) to pensioners with effect from July 1, 2009. This along with the approval of 1% interest subvention on housing loans up to Rs 10 lakh at a time when government employees are getting their 60% arrear of the 6th Pay Commission, may be seen as huge positives for Central government employees. There are about 5 million employees working with various Central government ministries or departments. In fact, the enhanced installment of DA, which represents an increase of 5% over the existing rate of 22% of the basic Pay, is meant for compensating price rise. The increase is in accordance with the accepted formula, which is based on the recommendations of the 6th Central Pay Commission, a government release said. The combined impact on the exchequer on account of both DA and DR would be about Rs 4355.35 crore in a full year and Rs 2903.55 crore for a period of 8 months from July, 2009 to February, 2010. So far as the housing incentive approved by the Cabinet on Thursday is concerned, it’s meant for all citizens but it could benefit government employees in particular as many realty developers building sub-Rs 20 lakh houses are aggressively wooing government employees and are also doling out special rebate for them ahead of the second installment of the Pay Commission arrear. In fact, interest subvention of 1% will be made available on individual housing loans upto Rs 10 lakh for construction or purchase of a new house or extension of an existing house provided the cost of the construction or price of the new house/extension does not exceed Rs 20 lakh. Inter-ministry Kabaddi tournament The inter-ministry Kabaddi tournament for 2009-2010 is scheduled to be held on October 13 & 14, 2009 at Brassey Avenue Sports Complex, New Delhi. If you feel you can bet for it, you may send your entry in the prescribed proforma duly signed by the welfare officer of the concerned ministry to the office of CCSCSB, Room No 361, B Wing, 3rd Floor, Lok Nayak Bhawan, New Delhi along with an entry fee of Rs 50.

1 comment:

  1. So babus now can plan out accordingly...A foreign trip at your own cost, investment in property or some good savings can do a lot with the huge amount....Cheers and happy durga Puja