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 (DA) and
dearness relief to central government employees and pensioners
respectively, is listed on agenda of the Union Cabinet meeting scheduled
for today,” 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.
Source: BS
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