Cabinet approves 2% DA hike for central government employees
NEW DELHI: The Union Cabinet today approved 2% hike in Dearness
Allowance/Dearness Relief for government employees and pensioners from
January 1, 2017.
Dearness allowance and dearness relief are provided to employees and
pensioners to neutralise the impact of inflation on their earnings.
As per an agreed upon formula, the Centre hikes the allowance taking
12-month average of retail inflation. The government does not consider
the price rise rate beyond a decimal point for deciding the rate of the
dearness allowance.
The dearness allowance is paid as proportion of the basic pay of the central government employees.
Earlier last year, the government hiked DA by 6 per cent to 125 per cent
of basic pay. The DA was later merged into the basic pay following the
implementation of the 7th Pay Commission awar
The Union cabinet on Wednesday approved a 2% hike in dearness allowance
(DA ) and dearness relief for central government employees and
pensioners from 1 January 2017.
Dearness allowance and dearness relief are provided to employees and
pensioners to neutralise the impact of inflation on their earnings.
Earlier PTI had on 5th March reported that the labour unions were not
happy with the proposed DA hike saying it would not be able to offset
the real impact of price rise.
“The dearness allowance as per the agreed formula by the Centre works
out to be 2% which would be effected from January 1, 2017,”
Confederation of Central Government Employees’ president K.K.N. Kutty
told PTI.
The average CPI-IW to be taken into account for raising DA is 4.95% from
1 January to 31 December, 2017. Since the government has already hiked
the dearness allowance by 2% in October last year from 1 July 2016, it
will now raise it further by 2%.
The dearness allowance is paid as proportion of the basic pay of the central government employees.
Kutty said that the federation in the next meeting of the national
council would make a case for considering the fractions while fixing DA.
The national council is an apex forum functioning under the Department
of Personnel and Training (DoPT) where unionists and senior official
discuss issues concerning central employees.
Earlier last year, the government hiked DA by 6% to 125% of basic pay.
The DA was later merged into the basic pay following the implementation
of the 7th Pay Commission award.
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