New Delhi: The government is likely to approve a hike in dearness allowance (DA) to 119 per cent from the existing 113 per cent, benefiting the around 30 lakh central government employees and 50 lakh pensioners including dependents.
“The average rate of retail inflation for industrial workers from July 1, 2014 to June 30, 2015 works out to be 6.77 per cent. Thus the Central government will hike dearness allowance for it employees by 6 per cent,” an official said.
He further said the Finance Ministry will put a Cabinet proposal in September for approval of 6 per cent dearness allowance hike from July 1 this year as the revised Consumer Price Index number for Industrial Workers for June was released by Labour Ministry on Friday.
With increase in DA, the pensioners will also gain as the benefit provided to them as dearness relief will be hiked to 119 per cent of pension.
The government had increased DA to 113 per cent from 107 per cent with effect from January 1, 2015, on April 7 on the basis of agreed formula for revision of the allowance.
However, the central government employees’ union is not very enthused by the 6 per cent hike in the dearness allowance as their long pending demand of merger of DA with basic pay has not been given heed by Seventh Pay Commission and the government.
“The erosion of value of wages is unbearable at 50 per cent dearness allowance. Now it will be 119 per cent. It is high time to merge DA with basic pay to provide relief to employees,” a leader of a central government employees’ union said.
“We had submitted our memorandum in this regard to Seventh Pay Commission. They forwarded it to Central Government. We have so many times apprised about the issue to the government. But no decision has been taken so far,” he said.
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