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Haryana Govt. merges DA with basic pay

CHANDIGARH, MAY 19. The Haryana Government has announced the merger of dearness allowance (DA) equal to 50 per cent of the existing basic pay of the employees with the basic pay, with effect from April 1 this year, besides enhancing the existing rate of DA by two per cent with effect from January 1 this year.

Finance Minister, Mr Sampat Singh, said the merger of DA would be shown distinctly as `dearness pay'. It would be counted for purposes like payment of allowances, transfer grant, retirement benefits, contribution to general provident fund, license fee and various advances.

He said the entitlement of leave travel concession, travel allowance and DA on tour and transfer and government accommodation would, however continue to be governed on the basis of the basic pay alone, without taking into account dearness pay.

He said in the case of existing pensioners, the dearness relief, equal to 50 per cent of the present pension, would be merged with pension with effect from April 1 and shown distinctly as dearness pay pension.

He said DA or dearness relief converted into dearness pay or dearness pension, respectively would be deducted from the existing rate of dearness allowance or dearness relief.

Prof Sampat Singh said to ensure that pensioners retiring between April 1 this year and January 31 next did not face any loss in fixation of pension, as a special dispensation in their case, the DA equal to 50 per cent of the basic pay would be treated as basic pay for the purpose of computation of pension in respect of basic pay received by them prior to April one this year. Consequently, the element of dearness pension would exist only for pensioners who retired on or after March 31, this year

The finance minister said it has been decided that the DA payable to its employees would be enhanced from the existing rate of 59 per cent to 61 per cent of the pay with effect from January 1 this year. The DA equal to 50 per cent of the basic pay would be converted to dearness pay with effect from that date. Therefore, the DA would be payable at the rate of 11 per cent with effect from April 1 this year, he added.

He said the other provision regarding the payment of dearness allowance as mentioned in the letter of his department, dated April 30, 1999 and for those who had opted to retain pre-revised scale, the provisions mentioned in the letter of June 23, 2000 would continue to be applicable while regulating the DA. However, the DA would be computed on the basis of basic pay, dearness pay and non- practicing allowance, all with effect from April 1 this year.

The arrears on account of enhancement in DA of government employees from January to March 31 would be credited to their general provident fund account and paid in cash thereafter.

UNI

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