Finance Ministry issued orders for the payment of Dearness Allowance at revised rates from 1.7.2014

Payment of Dearness Allowance to Central Government employees – Revised Rates effective from 01.07.2014

F.No.1/2/2014-E.II (B)

Government of India

Ministry of Finance

Department of Expenditure

North Block, New Delhi

Dated: 18th September, 2014.

OFFICE MEMORANDUM

Subject:- Payment of Dearness Allowance to Central Government employees – Revised Rates effective from 01.07.2014.

The undersigned is directed to refer to this Ministry’s Office Memorandum No.1/1/2014-E.II(B) dated 27th March, 2014 on the subject mentioned above and to say that the President is pleased to decide that the Deamess Allowance payable to Central Government employees shall be enhanced from the existing rate of 100% to 107% with effect from 1st July, 2014.

2. The provisions contained in paras 3, 4 and 5 of this Ministry’s O.M. No. 1(3)/2008-E.II(B) dated 29th August, 2008 shall continue to be applicable while regulating Dearness Allowance under these orders.

3. The additional installment of Dearness Allowance payable under these orders shall be paid in cash to all Central Government employees.

4. 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 regard to Armed Forces personnel and Railway employees, separate orders will be issued by the Ministry of Defence and Ministry of Railways, respectively.

5. In so far as the employees working in the Indian Audit and Accounts Department are concerned, these orders are issued with the concurrence of the Comptroller and Auditor General of India.

sd/-

(A. Bhattacharya)

Under Secretary to the Govt. of India

Source: www.finmin.nic.in
[http://finmin.nic.in/the_ministry/dept_expenditure/notification/da/da01072014.pdf]

General Provident Fund (GPF) – Employee Provident Fund (EPF)

General Provident Fund (GPF) – Employee Provident Fund (EPF)

The Provident Fund for Central Government employees is known as General Provident Fund (GPF). The scheme is not available for those who were appointed after 01.01.2014. They come under the newly formed National Pension Scheme.

Salaried employees are eligible for Employee Provident Fund. Under this scheme, 12% of the employee’s basic salary and D.A is deducted for savings. The employer pays the same amount into the employee’s account.

Currently, the salary limits for P.F. deductions have been raised from Rs. 5,000 to Rs. 15,000. In other words, if an employee earns Rs. 20,000 per month, then, at most, for Rs. 6,500, he would have had a PF deduction of 12%, i.e., Rs.780. Now, it has been raised to Rs. 1,800. The employer too will pay an equal amount. Of the 12% that the employer pays, 8.33% is taken for the PF pension and the remaining 3.36% goes into the PF account. Until now, a maximum Rs. 541 was being deducted for the pension fund. Now, that has been increased to Rs. 1,249.

The EPFO grants pension to retired employees of the private sector. The Centre has raised the minimum monthly pension issued by EPFO to Rs. 1,000. More than 50 lakh employees will benefit from this.

Source : www.employeesnews.net