The Prime Minister Dr. Manmohan Singh led Cabinet
Committee on Economic Affairs (CCEA) met today evening and cleared the dearness
allowance hike. The meeting which supposed to take place last Friday was
postponed due to political reasons. The hike will be 7 per cent and the new DA
will be 72 per cent of the basic pay for all central government employees. The
hike will be effective from July 1, 2012, and employees will get arrears from
that date.
The
hike is expected to cost government an additional Rs. 7,400 crore a year on the
exchequer. The decision, which would benefit about 50 lakh of employees and 30
lakh pensioners of the central government
The government had last increased DA in March this year from 58 per cent to 65 per cent, which was effective from January 1, 2012.
The government periodically hikes the DA, which is calculated based on the consumer price index for industrial workers (CPI-IW). The consumer price index (CPI) based on movement in retail prices, soared to 10.03% in August, from 9.86% in July, which means a higher DA hike next time
The
hike is expected to cost government an additional Rs. 7,400 crore a year on the
exchequer. The decision, which would benefit about 50 lakh of employees and 30
lakh pensioners of the central governmentThe government had last increased DA in March this year from 58 per cent to 65 per cent, which was effective from January 1, 2012.
The government periodically hikes the DA, which is calculated based on the consumer price index for industrial workers (CPI-IW). The consumer price index (CPI) based on movement in retail prices, soared to 10.03% in August, from 9.86% in July, which means a higher DA hike next time
