Cabinet approves 7% Dearness Allowance Hike for all the central govt employees with effect from 1st January 2012.
The increase in dearness allowance (DA) which will cost the exchequer an additional Rs 7,500 crore.
The new DA rate is 65%. The decision will benefit about 50 lakhs central government employees and 30 lakh pensioners.
The increase in dearness allowance (DA) which will cost the exchequer an additional Rs 7,500 crore.
The new DA rate is 65%. The decision will benefit about 50 lakhs central government employees and 30 lakh pensioners.
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The D.A. is given to cope up with dearnes. If price hike is there due to petrolium goods price hike, the real income becomes negtive. The D.A. becomes useless. Simmialrly, the Govt. should, at least, consider the proportionate hike in income tax limit also, if the real income is to be maintained the same.
The DA hike adequately addresses inflation, in my opinion. Looking at hike in petrol prices - a hike of Rs. 2 per litre results in increase of Rs. 70 to 80 for a full tank. Even if a person uses 200 litres of petrol a month, it translates into Rs. 400 extra. DA increase of 7% for a person drawing Rs 30000 basic salary (one who can maintain a car)translates into a salary increase of Rs. 2100. This should more than offset the increase in the hike in petrol prices. We should stop cribbing!
Whether the OM for the same has been issued by the Finance Ministry. we have not received the orders yet?
The question of fuel price hike is not related to own transportation.
The Fuel price hike effects all essential commodities exponentially and the DA hike based on the consumer price index do not address this issue.
For example compare the cost of mink, Vegitables, rice/Wheat, pulses and all other services. All of them have increased more than the DA hike.