Digital Desk: The
government is planning to increase the Dearness Allowance (DA) for lakhs of
Central government employees working in different ministries and departments.
According to sources,
DA will be increased by 3-4 percent in July or August. Based on the retail
inflation data, the DA and Dearness Relief is for pensioners to offset the
impact of inflation.
DA is a component of
salary which is some fixed percentage of the basic salary, aimed at encircling
the impact of inflation. Since DA is directly related to cost of living, the DA
component is different for different employees based on their geographical
location. This means DA is different for employees in the urban sector, semi-
urban sector and rural sector.
The hike depends on
many factors like the AICPI Index (All India Consumer Price Index) which
witnessed a decline in January and February.But it witnessed a huge jump in the
month of March.
Employees currently
working under the central government get 31% DA. This is likely to be increased
by 4% in July, which will make the DA 34%. In march, The Union Cabinet approved
to increase 3% in dearness allowance under the 7th Pay Commission.
Currently the number
of central employees is more than 50 lakhs, while 65 lakhs ex-central employees
receive pension.
As per report:
Central govt employees likely to get DA hike with 18 months arrears.
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