Govt to increase dearness allowance to 107 p.c The
Government is likely to approve a hike in dearness allowance (DA) to 107 per
cent from the existing 100 per cent, benefiting around 30 lakh Centre’s
employees and its 50 lakh pensioners including dependents.
“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,” an official said. He said the Finance Ministry will now put a
Cabinet proposal for approval of 7 per cent DA hike from July 1 this year as
the revised Consumer Price Index-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 previous 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
dearness allowance as their long pending demand of merger of DA with basic pay
has not been given heed by 7th Pay Commission and the government.
“The erosion of value of wages is unbearable at 50
per cent dearness allowance. Now it will be 107 per cent. It is high time to
merge DA with basic pay to provide relief to employees,” Confederation of
Central Government Employees’ President KKN Kutty told PTI.
“We had summited our memorandum in this regard to
7th Pay Commission. They forwarded it to Central Government. We have apprised
about the issue to the newly elected NDA government. But no decision has been
taken so far,” he said. With merger of DA with basic pay, the salary and
allowances paid in proportion of basic pay are increased.
As per earlier practise DA was merged with basic
pay once it breached 50 per cent mark. But the 6th Pay Commission has
disallowed that.
Source : The Hindu
