Cabinet Committee likely to approve DA this week w.e.f. July 2013
Govt to hike DA by 10%; benefit 80 lakh employees and pensioners
New Delhi: Ahead of festival season, Central Government will
this month announce a hike in dearness allowance to 90 percent from existing 80
percent, benefiting about 50 lakh central employees and 30 lakh pensioners.
According to official source, dearness allowance hike will be
10 percent and would be effective from July 1, this year.
The sources further said the exact amount of dearness
allowance, as a proportion of basic pay, works out to over 90 percent 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 June stood at 11.63 percent, higher than
provisional estimate of 11.06 percent for the month released on July 31.
Sources said that since the revised estimate for the month of
June is available, the Finance Ministry would soon prepare a proposal for the
purpose for seeking Union Cabinet nod.
They further said the proposal will 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 percent to be given with effect from July 1, 2010.
DA was hiked to 80 percent from 72 percent in April, 2013,
effective from January 1, this year.
As per the practice, the government uses CPI-IW data for past
12 month 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 to June 2013 will
be used to take a final decision.
Source : PTI News
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