Dearness Allowance hiked by 2 per cent for central govt employees, pensioners

Dearness allowance is provided to employees and pensioners to minimise the impact of price rise on their earnings.

By: Express Web Desk | New Delhi | Updated: October 27, 2016 6:26 pm
Dearness allowance, DA, Dearness allowance hiked, DA hiked, Dearness allowance central government employees, Dearness allowance government employees, Dearness allowance pension, Dearness allowance pensioners, india news Finance Minister Arun Jaitley. (Source: File)

The Cabinet on Thursday approved the 2 per cent hike in Dearness Allowance (DA) for Central Government employees and pensioners, effective from July 1, 2016. The proposal to hike the DA was granted during the Cabinet meeting today afternoon at the Prime Minister’s Office. The announcement, which comes ahead of Diwali, is set to bring cheer to around 50 lakh central government employees and 58 lakh pensioners in the country.

WATCH VIDEO: Government’s Diwali Gift to Central Government Employees, Pensioners

Dearness allowance is provided to employees and pensioners to minimise the impact of price rise on their earnings. Earlier this year, the government hiked dearness allowance by 6% to 125 % of the basic pay. It was later merged into the basic pay, based on the recommendation of the 7th Pay Commission Panel. However, the central government employee unions wanted the DA to be increased by 3 per cent and not 2 per cent.

President of Confederation of Central Government Employees K K N Kutty said: “The 12-month average of Consumer Price Index for Industrial Workers from July 1, 2015 to June 30, 2016, works out to be 2.92 per cent. Therefore the unions had pressed for 3 per cent DA. We are not satisfied with this.”

As per the agreed formula, government increases DA on the basis of 12-month average of the retail inflation and does not consider the price rise rate beyond decimal point for deciding the rate of dearness allowance. According to statement, the increase is in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission. The combined impact on the exchequer on account of both Dearness Allowance and Dearness Relief would be Rs 5,622.10 crore per annum and in the Financial Year 2016-17 for the period of 8 months (i.e. from July 2016 to February 2017), it would be Rs 3,748.06 crore.

with PTI inputs

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First Published on: October 27, 2016 2:18 pm
  1. R
    Ramachandran
    Oct 27, 2016 at 1:46 pm
    Very good.
    Reply
    1. I
      IML sood
      Oct 27, 2016 at 2:28 pm
      It is a welcome step but problem is for some who have heart burning without reason,may be their habit of being on wrong side always.
      Reply
      1. M
        module
        Oct 27, 2016 at 9:05 am
        first, let the govt implement the 7th pay commission, ex-servicemen still not yet got it. then how 2% DA been declared? one and another this just declaring but practically nothing coming in bank account. now Diwali almost gone, then what is next time limit?
        Reply
        1. a
          anil kou,
          Oct 28, 2016 at 5:06 am
          kindly inform whether the unrevised pay scale holders will get revised DA or otherwise. If in affirmative, what is the percentage for unrevised pay scales..
          Reply
          1. A
            Arvind
            Oct 27, 2016 at 2:09 pm
            Thanks to Modi Govt ! Diwali Bonas !
            Reply
            1. A
              asok
              Oct 27, 2016 at 2:46 pm
              every state can become like singapore , if its head or chief is trained for 2-3 months in singapore for finance, HRD and development works done there with a strong will power. Many states have area bigger than singapore with more water and man power.
              Reply
              1. B
                BONAGIRI SREENIVASA
                Oct 28, 2016 at 12:07 pm
                are Federation Leaders, what happened to HRA decision? It seems u r still busy in counting kick backs received from Mod....
                Reply
                1. S
                  sabapathy
                  Oct 27, 2016 at 1:41 pm
                  in a country where 60 percent of the potion is living below poverty line demanding more by the greedy govt employees is a criminal offence. lt;br/gt;think of the people who are unable to get even a single meals. be content with what you are getting.
                  Reply
                  1. D
                    Danish Mir
                    Nov 4, 2016 at 5:51 pm
                    What about the working cl labour's sir
                    Reply
                    1. H
                      hypo crite
                      Oct 27, 2016 at 12:28 pm
                      And when did 125 percent DA merged with basic. Its all false news.
                      Reply
                      1. H
                        hypo crite
                        Oct 27, 2016 at 12:27 pm
                        Its 2nd lowest hike ever, earlier wad 1 percent hike by sri AB Vajpayee jee.
                        Reply
                        1. J
                          joseph
                          Oct 27, 2016 at 1:04 pm
                          Modi ji your Diwali gift is excellent. However please p the orders for extending 7th pay commission benefits to autonomous insutions also.
                          Reply
                          1. K
                            kumar
                            Oct 27, 2016 at 10:37 am
                            Earlier the DA was 125% of basic pay. How much will it be now?
                            Reply
                            1. S
                              shiv
                              Oct 29, 2016 at 11:17 am
                              nothing hiked,I received my military payment, making fools to defence people.
                              Reply
                              1. P
                                parthasarathy
                                Dec 18, 2016 at 7:18 am
                                For Autonomous bodies employees no 7cpc and pensioners even no 7% DRlt;br/gt;We don't know whats the reason? No body bothers this section of employees and pensioners. Atleast one noble person file writ in court about non acceptability of 7cpc orders to Autonomous bodies.
                                Reply
                                1. N
                                  N Bhatia
                                  Oct 27, 2016 at 10:06 am
                                  The wording "The announcement, which comes ahead of Diwali, is set to bring cheer to central government employees pensioners in the country" has no weight. . 2% on Basic pay will hardly bring any cheer specially to Pensioners. Diwali is almost gone.
                                  Reply
                                  1. T
                                    T.R.Krishnamoorthy
                                    Oct 27, 2016 at 1:54 pm
                                    Mr F.M should open his eyes to the pitiable condition of 'senior citizens', who live solely on the income from bank deposit interests. WHEN THE BANK DEPOSIT INTEREST RATES ARE NOSE DIVING, where shall we go for money? HAVE YOU EVER THOUGHT OF US? YOU ARE LIBERALLY ENHANCING THE INCOME OF ONE SECTOR CREATING INFLATION, WHEN OTHERS ARE STRUGGLING TO SURVIVE.
                                    Reply
                                    1. P
                                      Pranesh Debnath
                                      Oct 28, 2016 at 12:49 pm
                                      Modi government might be thinking that central government employees are and they don't understand the economics. This shameful 2 % is much lower than CPI hike during last one year. We are really a ashamed on Modi government how this shameless decision can be taken by them which deprived the employees.
                                      Reply
                                      1. S
                                        S Kundu
                                        Oct 28, 2016 at 6:32 am
                                        Surprising decision by central govt. When unemployment and inflation is a very serious issue govt trying to satisfying certain group of employees. They don't think about PVt employees, contractual employees and others working people.
                                        Reply
                                        1. R
                                          RR
                                          Oct 27, 2016 at 2:33 pm
                                          Non implementation of 7 cpc revision with most of govt department is then ok as per ur sense? And this 2 pc da hike giving mere 200 rs increment is great diwali Bonanza? Have some shamE and conscience instead of blabbing like any party puppet.
                                          Reply
                                          1. R
                                            RR
                                            Oct 27, 2016 at 11:06 am
                                            One after another insult of govt staffs is being done. First they did not revise the autonomous body ries under 7th pay revision which includes autonomous organization of high credibility like CSIR, DRDO, IISC, BARC, ISRO like research and scientific organization. If you don't increase ry of Babu or departments where corruption is rampant, it is understandable. But why scientific organizations who are clean and honestly doing duty despite of non-supportive atmosphere provided by govt. Now u want them to do suicide? And then you give 2% DA hike which will hardly increase ry by 200-300 rupees? This is the way you treat your workforce? This is the way you demoralize the scientific community of the nation whom you denied ry hike under 7th pay revision and now giving just 2% DA hike instead of regular 8%? Worst govt this is for the ried cl. It is selling this nation to Baniyas and thieves of industries. ry of workers is being spent on businessmen and other interests. And I tell you Modi, that don't dare to play it as an election card and implement 7th Pay revision due from Jan 2016 during next lok sabha elections. It will only make people simmer and vote against you. You r biggest insulter of ried cl.
                                            Reply
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