Increase of allowance by 25% each time the price index increase by 50% : Clarification

Directorate General
Central Industrial Security Force
(Ministry of Home Affairs)

Block No.13, CGO Complex,
Lodi Road, New Delhi-03.
Dated, the 4th August, 2011

No.E-28012(2)/1/09-Estt.II/PF/1922

To
All Sector IsG (including Airport and Trg. Sector)

Sub : Increase of allowance by 25% each time the price index increase by 50% : Clarification.

On implementation of 6th CPC recommendations, various allowances such as Children Education Allowance, Kit Maintenance Allowance, Washing Allowance, Family Accommodation Allowance, SCA etc. had been revised by the Govt. w.e.f. 1.9.2008 with the stipulation that the rate shall increase by 25% each time the price index increases by 50%. It is pertinent to mention that in some of the order, it has been mentioned that the rate of this allowance (e.g. CEA & SCA) shall automatically increased by 25%, whenever the Dearness Allowance payable on the revised pay structures goes up by 50%, and in some other order, it has been mentioned that the rate of this allowance will increase by 25% each time the price index increases by 50%.

2. Consequent upon the enhancement of the rate of Dearness allowance payable to central Government employees from the existing rate of 45% to 51% with effect from 1st January 2011 vide G.I. M.F. O.M. No. 1(2)/2011-EII(B) dated 24.3.2011, this Directorate has received references from various field units seeking clarification whether such allowances shall increase automatically by 25% each time the price index increased by 50% or any specific order is required for claiming such allowances at the enhanced rates. The matter was referred to the Ministry.

3. The MHA has now clarified that in view of the MoF Resolution dated 29.08 2008 and DOPT OM dated 4.5.2011 no specific order is required to be issued, vide their UO No.E-12012/(2)09-Esst.II/PF.II dated 22nd July 2011.

4. All the units under your Sector may kindly be advised accordingly.

sd/-
(Neeta Singh)
Asstt. Inspector General (Estt)

Source Document from : http://cisf.nic.in/1922%20dtd%2009.08.2011.pdf

Increase of allowance by 25%