New Delhi: With the retail inflation figure for industrial workers out, the government is now set to approve a hike in Dearness Allowance (DA) to 107 per cent from the existing 100 per cent.
Once increased, it will benefit around 30 lakh central government employees and 50 lakh pensioners including dependents.
Sources in the government said, “The average rate of retail inflation for industrial workers from July 1, 2013 to June 30, 2014 works out to be 7.25 per cent. Thus the Central government will hike dearness allowance for it employees by 7 per cent.”
Sources went on to add that the finance ministry would now put a Cabinet proposal for approval of 7 per cent DA hike from July 1 this year as the revised CPI-Industrial Workers data for June was released by labour ministry on Saturday. With increase in DA, the pensioners will also gain as the benefit provided to them as dearness relief will be hiked to 107 per cent of basic pay.
The UPA government had increased DA to 100 per cent from 90 per cent with effect from January 1, 2014, on February 28 on the basis of agreed formula for revision of the allowance. However, the central government employees’ union is not very enthused by the 7 per cent hike in the DA as their long pending demand of merger of DA with basic pay has not been given heed by 7th Pay Commission.
