6 Per cent DA Hike Expected Effective from July 2015

The Government is likely to increase the DA to 119 % from 113 %, which if cleared will potentially benefit over 48 lakh government employees and 55 lakh pensioners.

Earlier in April, the government had hiked DA by 6 per cent to 113 per cent of their basic pay with effect from January 2015. As we all know, DA is paid as proportion of the basic pay. We have the good news from reliable sources that the Cabinet is likely to consider tomorrow in accordance with the accepted formula based on the recommendations of the 6th Pay Commission, to increase the dearness allowance to 119 per cent from 113 per cent, which if cleared will potentially benefit over one crore government employees and pensioners (48 lakh government employees and 55 lakh pensioners).

The proposed DA hike will take effect from July 1. As per the agreed formula, the DA rate increase is an average of 12-month consumer price index-industrial workers from July 1, 2014 to June 30, 2015.

However, president of Confederation of Central Government Employees’ and Workers KKN Kutty said, “The government should have given interim relief and merged DA with basic pay in view of the extension of term of the 7th Pay Commission by four months till December 31, 2015.”

He further went on to say, “The government assured employees that the 7th Pay Commission will submit its report in 18 months. It’s delaying submission of the report by the commission because it doesn’t want to increase its salaries bill this fiscal.”

He said, inflation has gone up, hence in the present scenario the DA should have been hiked atleast to 185 per cent of the basic pay.

Source : Economic Times