The Union Cabinet is likely to approve a proposal to increase dearness allowance (DA) of central government employees by 8% on Thursday.
The move to increase DA from 72% to 80% will benefit around 50 lakh employees and 30 lakh pensioners of the central government.
"The Union Cabinet may consider the finance ministry proposal to increase DA in its meeting scheduled for Thursday," a source said, adding the hike would be effective from January 1, 2013 and employees and pensioners would be entitled to arrears.
The government had raised DA to 72% in September last year, which had come into effect from July 1, 2012.
As per usual practice, DA is merged with basic pay when it breaches the 50% cap. This helps employees get higher allowances as those are paid as proportion of the basic pay.
source:http://karnmk.blogspot.in
New Delhi: The Union Cabinet is likely to consider today a proposal to hike the dearness allowance (DA) by 8 per cent to 80 per cent of the basic pay for all central government employees, sources said.
But, with Finance Minister P Chidambaram in Washington, there is a possibility the decision on the matter may be deferred.
The decision has been pending before the Cabinet for about a month now, as Mr Chidambaram has been travelling and not been able to attend Cabinet meetings in the past few weeks.
The move, if approved, will benefit about 50 lakh serving employees and 30 lakh pensioners.
The government had raised the DA by 7 per cent in September last year to 72 per cent of the basic pay, effective July 1, 2012.
The government periodically hikes the DA which is linked to the consumer price index (CPI) for industrial workers.
source:http://profit.ndtv.com/news/economy/article-cabinet-may-consider-hiking-dearness-allowance-by-8-today-321096
New Delhi: The Union Cabinet is likely to consider today a proposal to hike the dearness allowance (DA) by 8 per cent to 80 per cent of the basic pay for all central government employees, sources said.
But, with Finance Minister P Chidambaram in Washington, there is a possibility the decision on the matter may be deferred.
The decision has been pending before the Cabinet for about a month now, as Mr Chidambaram has been travelling and not been able to attend Cabinet meetings in the past few weeks.
The move, if approved, will benefit about 50 lakh serving employees and 30 lakh pensioners.
The government had raised the DA by 7 per cent in September last year to 72 per cent of the basic pay, effective July 1, 2012.
The government periodically hikes the DA which is linked to the consumer price index (CPI) for industrial workers.
source:http://profit.ndtv.com/news/economy/article-cabinet-may-consider-hiking-dearness-allowance-by-8-today-321096