Wednesday 18 September 2013

10% DA hike for central employees expected to come up in a cabinet meeting on Friday,

Centre set to hike DA of govt employess by 10%

18 Sep 2013
Hindustan Times
NEW DELHI: The government is set to hike the dearness allowance (DA) of its employees by 10%. The proposal, which is expected to come up in a cabinet meeting on Friday, will benefit 50 lakh employees and 30 lakh pensioners of the central government.


The proposal comes at a time when inflation, especially of food articles, has soured. But it can also be seen as a sop for the aam aadmi as this is the second DA booster in the current fiscal. The Centre had announced 8% DA hike in April this year. The proposed increase, which will be effective from July 1, 2013, will make DA of central government employees 90% of their basic pay. The allowance is calculated as a proportion of the basic pay and the current DA is 80% of the base salary.

While the Centre will have to spend additional ` 10,879.60 crore annually to fund this 10% rise, the outflow is also expected to boost the purchasing power of the middle-class.

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