Diwali bonanza: Centre may announce 2 per cent DA for staff, pensioners

Earlier this year the government hiked Dearness Allowance by 6 per cent to 125 per cent of the basic pay.

By: PTI | New Delhi | Published:October 26, 2016 9:29 pm
dearness allowance, DA, dearness allowance central government employees, diwali, festive season, government employees, central government, India news, Indian express news Dearness allowance and dearness relief is provided to employees and pensioners to neutralise the impact of price rise on their earnings.

In what could bring cheers to 50 lakh central employees and 58 lakh pensioners ahead of Diwali, the Centre is all set to announce 2 per cent dearness allowance to be effective from July 1, 2016. “The proposal to provide 2 per cent dearness allowance and dearness relief to central government employees and pensioners respectively, is listed on agenda of the Union Cabinet meeting scheduled for tomorrow,” a source said.

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

Earlier this year the government hiked Dearness Allowance by 6 per cent to 125 per cent of the basic pay. The DA was later merged into the basic pay following implementation of 7th Pay Commission award.

The central government employee unions want that the DA should be increased by 3 per cent and not 2 per cent which is being considered by the centre.

President of Confederation of Central Government Employees K K N Kutty told PTI: “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.

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  1. J
    JayHind
    Oct 26, 2016 at 4:43 pm
    After ramjee freed his wife from evil brahaman ravan they celebrate Divalilt;br/gt;lt;br/gt;After modeejee left his wife chaddis celibates holi
    Reply
    1. H
      heena
      Oct 26, 2016 at 4:33 pm
      For many central govt and its undertaking the 7th pay commission itself is not implemented so far. Then where is the question of Diwali gift?
      Reply
      1. S
        Stivan J Alva
        Oct 28, 2016 at 8:34 am
        Dearness allowance is provided to employees and pensioners to minimise the impact of price rise on their earnings. This year government hiked dearness allowance by 6% to 125 % of the basic pay and it was later merged into the basic pay, based on the recommendation of the 7th Pay Commission Panel. Considering the 132% of DA on computing with pre revised pay which has a hike of 6% and 2% of DA on revised pay... If the DA based on pre revised and revised analyzed... one can find out the difference... No doubt, government fooled its employees... Are you happy with 2% DA hike?
        Reply
        1. S
          surekha
          Oct 26, 2016 at 4:56 pm
          Government paying "Need based minimum wage" at 2.57 factor in Seventh Pay Commission report to its staff. They have not shown the factor for Standard and Real wages which they were required to indicate in their report itself.Report is based on prevailing market rate as on 01.04.2014. recorded by Simla statistical department that to are w prices of the items shown in the basket on date of implementation ie on 01.01.2016 ie two years late, the market prices were 30% gone high by this date. Wages are not neutralise in real sense. These are not real time wages to survive.
          Reply