Good news for central govt employees! Modi govt likely to hike DA by 6%
New Delhi, Feb 20: There is a good news for the central government employees as the Narendra Modi government is likely to hike dearness allowance to 125 percent from existing 119 per cent.
If this is done then, it would benefit over 10 million employees and pensioners.
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.
(With inputs from agencies)