Cabinet hikes DA to 100%, salary may increase by 30%
Cabinet
hikes DA to 100%, salary may increase by 30%
NEW DELHI: The
Union Cabinet on Friday raised dearness allowance to 100% from 90%, benefiting
50 lakh employees and 30 lakh pensioners.
The government has also cleared the way for merger of 50% DA with basic pay by approving it among the terms of reference of the 7th Pay Commission. An official said now the commission can suggest the merger in its interim report.
He added that 50% DA merger with basic pay will roughly increase the gross salaries of central government employees by around 30%.
The Cabinet approved the proposal to release an additional installment of DA and dearness relief (DR) to pensioners with effect from January 1, 2014, in cash, but not before the disbursement of the salary for the month of March 2014 at the rate of 10% increase over the existing rate of 90%, said an official statement.
Central government employees as well as pensioners are entitled for DA/DR at the rate of 100 per cent of the basic with effect from January 1, 2014, it said.
The government has estimated that the combined impact on exchequer on account of both DA and DR would be Rs 11,074.80 crore every year.
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New
Delhi: The government is likely to approve a
hike in dearness allowance (DA) to 107 per cent from the existing 100 per cent,
benefiting the Centre's around 30 lakh employees and its 50 lakh pensioners
including dependents.
"The average rate of retail inflation for industrial workers from July 1, 2013 to June 30, 2014 works out to be 7.25 per cent. Thus the Central government will hike dearness allowance for it employees by 7 per cent," an official said.
He further said the Finance Ministry will now put a Cabinet proposal for approval of 7 per cent dearness allowance hike from July 1 this year as the revised Consumer Price Index-Industrial Workers data for June was released by Labour Ministry on Saturday.
With increase in DA, the pensioners will also gain as the benefit provided to them as dearness relief will be hiked to 107 per cent of basic pay.
The previous UPA government had increased DA to 100 per cent from 90 per cent with effect from January 1, 2014, on February 28 on the basis of agreed formula for revision of the allowance.
However, the central government employees' union is not very enthused by the 7 per cent hike in the dearness allowance as their long pending demand of merger of DA with basic pay has not been given heed by 7th Pay Commission and the government.
"The erosion of value of wages is unbearable at 50 per cent dearness allowance. Now it will be 107 per cent. It is high time to merge DA with basic pay to provide relief to employees," Confederation of Central Government Employees' President K K N Kutty told PTI.
"We had summited our memorandum in this regard to 7th Pay Commission. They forwarded it to Central Government. We have apprised about the issue to the newly elected NDA government. But no decision has been taken so far," he said.
With merger of DA with basic pay, the salary and allowances paid in proportion of basic pay are increased. As per earlier practice, DA was merged with basic pay once it breached 50 per cent mark. But 6th Pay Commission has disallowed that.
"The average rate of retail inflation for industrial workers from July 1, 2013 to June 30, 2014 works out to be 7.25 per cent. Thus the Central government will hike dearness allowance for it employees by 7 per cent," an official said.
He further said the Finance Ministry will now put a Cabinet proposal for approval of 7 per cent dearness allowance hike from July 1 this year as the revised Consumer Price Index-Industrial Workers data for June was released by Labour Ministry on Saturday.
With increase in DA, the pensioners will also gain as the benefit provided to them as dearness relief will be hiked to 107 per cent of basic pay.
The previous UPA government had increased DA to 100 per cent from 90 per cent with effect from January 1, 2014, on February 28 on the basis of agreed formula for revision of the allowance.
However, the central government employees' union is not very enthused by the 7 per cent hike in the dearness allowance as their long pending demand of merger of DA with basic pay has not been given heed by 7th Pay Commission and the government.
"The erosion of value of wages is unbearable at 50 per cent dearness allowance. Now it will be 107 per cent. It is high time to merge DA with basic pay to provide relief to employees," Confederation of Central Government Employees' President K K N Kutty told PTI.
"We had summited our memorandum in this regard to 7th Pay Commission. They forwarded it to Central Government. We have apprised about the issue to the newly elected NDA government. But no decision has been taken so far," he said.
With merger of DA with basic pay, the salary and allowances paid in proportion of basic pay are increased. As per earlier practice, DA was merged with basic pay once it breached 50 per cent mark. But 6th Pay Commission has disallowed that.
Source
from India Times and NDTV
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