Ahead of the festive season, the Central government will this month announce a hike in dearness allowance (DA) to 90% from the existing 80%, benefiting nearly 50 lakh central employees and 30 lakh pensioners, according to official sources.
According to officials privy to the developments, the DA hike will be 10% and effective from July 1, this year.
The sources further said the exact amount of DA, as a proportion of basic pay, works out to over 90% after factoring in the revised All-India Consumer Price Index for Industrial Workers (CPI-IW) for June.
According to revised data released on August 30, retail inflation for factory workers for Jun
e stood at 11.63%, higher than the provisional estimate of 11.06% for the month released on July 31.
Sources said since the revised estimate for the month of June was available, the finance ministry would soon prepare a proposal for the purpose for seeking Union Cabinet nod.
They further said the proposal would be moved this month.
There would be a double-digit hike in DA after about three years.
It was last in September, 2010, that the government had announced a hike of 10% to be given with effect from July 1, 2010.
DA was hiked to 80% from 72% in April 2013, effective from January 1, this year.
As per practice, the government uses CPI-IW data for past 12 months or a year to arrive at a number for the purpose of any DA hike. Thus, the retail inflation for industrial workers between July 2012 and June 2013 will be used to take a final decision.
Source : PTI/Hindustan Times
According to officials privy to the developments, the DA hike will be 10% and effective from July 1, this year.
The sources further said the exact amount of DA, as a proportion of basic pay, works out to over 90% after factoring in the revised All-India Consumer Price Index for Industrial Workers (CPI-IW) for June.
According to revised data released on August 30, retail inflation for factory workers for Jun
Sources said since the revised estimate for the month of June was available, the finance ministry would soon prepare a proposal for the purpose for seeking Union Cabinet nod.
They further said the proposal would be moved this month.
There would be a double-digit hike in DA after about three years.
It was last in September, 2010, that the government had announced a hike of 10% to be given with effect from July 1, 2010.
DA was hiked to 80% from 72% in April 2013, effective from January 1, this year.
As per practice, the government uses CPI-IW data for past 12 months or a year to arrive at a number for the purpose of any DA hike. Thus, the retail inflation for industrial workers between July 2012 and June 2013 will be used to take a final decision.
Source : PTI/Hindustan Times
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