The Centre is likely to hike dearness allowance (DA) to 125 per cent from existing 119 per cent, which would benefit its over 10 million employees and pensioners.
"Average
rate of Consumer Price Index-Industrial Labour from January to December, 2015
was 6.73 per cent. Thus, the Centre will increase dearness allowance by six
percentage points to 125 per cent from existing 119 per cent as per accepted
formula for calculation," Confederation of Central Government
Employees and Workers President K K N Kutty told.
The
new rate of DA will be implemented from January 1, 2016, which will be
applicable for 4.8 million central government employees and 5.5 million
pensioners. DA is paid as a proportion of basic pay of employees.
The
proposal to hike DA is moved by the Finance Ministry on the basis of accepted
formula for calculation. The Union Cabinet approves the DA hike for its
employees.
However,
dissatisfied over the meagre hike in DA in the backdrop of high cost of living,
Kutty said, "The real inflation ranges between 220-240 per cent, but we
will get only 125 per cent."
The
Centre revised DA twice in a year on the basis of one year average of retail
inflation for industrial workers as per the accepted formula.
Earlier
in September last year, DA was increased to 119 per cent from 113 per cent
which was effective from July 1, 2015.
In
April last year, the government had hiked DA by 6 percentage points to 113 per
cent of their basic pay with effect from January 1, 2015.
