The Union Cabinet is likely to
approve the hike in the dearness allowance of the employees and pensioners, on
Friday. Once approved, the dearness allowance for the employees and the
dearness relief for pensioners will become effective from July 1, 2012. It may
take few more days for the issue of the order by the Finance Ministry.
The hike,
which is calculated based on CPI-IW is supposed to be to 72 per cent from the
current 65 per cent. The CPI is currently around 10%, that may push for an
even higher DA hike during January 2013. This hike will benefit 50 lakh
employees and 30 lakh pensioners. However the hike may be negligible when
compared to the price hike that we can expect from the recent fuel price hike.
According to
confirmed sources, the proposal to increase dearness allowance (DA) by 7 per
cent of the basic pay is scheduled to come up for consideration of the Union
Cabinet on Friday,
The Last DA
hike effective from Jan 2012 was also 7%.
