The Union Cabinet on Wednesday cleared a proposal to increase dearness allowance (DA) by 2 percent effective from January 1 this year. This will benefit over one crore central government employees and pensioners.
As per an agreed upon formula, the Centre hikes the allowance taking a 12-month average of retail inflation. The government does not consider the price rise rate beyond a decimal point for deciding the rate of the dearness allowance.
The dearness allowance is paid as a proportion of the basic pay of the central government employees.
Earlier last year, the government hiked DA by 6 percent to 125 percent of basic pay. The DA was later merged into the basic pay following the implementation of the 7th Pay Commission award.
Central DA increased 2%
By IndianMandarins - 2017-03-15 19:59:12
The Union Cabinet on Wednesday cleared a proposal to increase dearness allowance (DA) by 2 percent effective from January 1 this year. This will benefit over one crore central government employees and pensioners.
As per an agreed upon formula, the Centre hikes the allowance taking a 12-month average of retail inflation. The government does not consider the price rise rate beyond a decimal point for deciding the rate of the dearness allowance.
The dearness allowance is paid as a proportion of the basic pay of the central government employees.
Earlier last year, the government hiked DA by 6 percent to 125 percent of basic pay. The DA was later merged into the basic pay following the implementation of the 7th Pay Commission award.
