Dearness Allowance 80% from January 2013 is likely to be approved today

As we expected, sources told that the union cabinet likely to approve the Finance Ministry proposal to increase the dearness Allowance from existing 72% to 80%  in its meeting scheduled to be held today(02.04.13). The 50 lakh central government employees will be benefited by this hike.

All the central government employees news websites and blogs debated a lot on this matter and discussed more than enough about what will be the rate of dearness allowance from January 2013 and when it will  be announced. According to the sources the cabinet may approve the 8% hike  in  the dearness allowance and in total 80% dearness allowance  will be paid from 1st January 2013 to central government servants. Finally there will be a good end for the expectations of all the central government employees tomorrow, as the news coming about  dearness allowance is positive and propitious.

Industrial employees of central government establishment, those who are getting salary on 5th to 9th of every month, may have a chances to be paid the additional installment of dearness allowance for the month of March , if it is announced today as per the sources, provided necessary finance ministry order is issued  in time.

The Extract of report published in this regard in Indian Express is as follows

Union Cabinet is likely to approve tomorrow a proposal to increase dearness allowance (DA) to 80 per cent from existing 72 per cent benefiting about 50 lakh employees and 30 lakh pensioners of the central government.
“The Union Cabinet may consider the finance ministry proposal to increase the DA by 8 per cent to 80 per cent in its meeting scheduled for tomorrow”, a source said.
The hike would be effective from January 1, 2013 and the employees and pensioners would be entitled for arrears, he said.
The government had hiked DA to 72 per cent in September last year, which had come into effect from July 1, 2012.
“It is good that they are increasing DA. We demand that they should merge up to 50 per cent DA with the basic pay as per the practice and set up the seventh pay commission at the earliest”, Secretary of Confederation of Central Government Employees, K K N Kutty said.
As per the practice, the DA is merged with basic pay when it breaches the 50 per cent cap. This helps employees get higher allowances as those are paid as proportion of the basic pay. PTI

Source : The Indian Express