Centre government is all set to announce 2% dearness allowance (DA) for their 50 lakh central employees and 58 lakh pensioners ahead Diwali effective from 1 July 2016.
“The proposal to provide 2% DA and dearness relief to central government employees and pensioners respectively is listed on agenda of the Union Cabinet meeting scheduled for tomorrow,be an increase,” told a person close to this matter.
DA and DR to provide by Centre government will help to neutralize the impact of price rise
The motive is to provide Dearness allowance and dearness relief to employees and pensioners to neutralize the impact of price rise on their earnings. Earlier this year the center government has already hiked DA by 6% to 125% of the basic pay.
The DA was later merged into the basic pay following implementation of 7th Pay commission award. At the same time, the central government employees want that the DA should be increased 3%, not 2%, which is being considered by the government.
Employees pressurizing government for 3 percent DA
“The 12-month average of Consumer Price Index for Industrial Workers from 1 July 2015 to 30 June 2016, works out to be 2.92%. Therefore the unions had pressed for 3% DA. We are not satisfied with this,” president of a confederation of center government employees K K N Kutty said.
As per the agreed formula, government increases DA on the basis of the 12-month average of the retail inflation and does not consider the price rise rate beyond the decimal point for deciding the rate of dearness allowance.
