DA from July 2014 to be approved soon

Central Government Employees DA from July 2014 to be approved soon – DA with effect from 1st July 2014 estimated to be 107%

As Consumer Price Indices for the period from July-2013 to June 2014 have been officially released by Labour Ministry, Central Government Employees and Pensioners await approval of increase in DA with effect from July 2014. In our previous article, we have estimated the likely DA payable to Central Government Employees and Pensioners from July 2014 as 107%, which amounts to 7% hike in DA.
Click here to check the previous article – 7% additional DA for Central Government Employees with effect from 1st July 2014
Now, as per the news item published in Hindu Businessline, Government is likely to approve a hike in dearness allowance to 107 per cent from the existing 100 per cent, benefiting around 30 lakh Centre’s employees and its 50 lakh pensioners including dependents.

Text of Hindu Businessline’s report

“The average rate of retail inflation for industrial workers from July 1, 2013 to June 30, 2014 works out to be 7.25 per cent. Thus, the Central government will hike dearness allowance for it employees by 7 per cent,” an official said.

He said the Finance Ministry will now put a Cabinet proposal for approval of 7 per cent DA hike from July 1 this year as the revised Consumer Price Index—Industrial Workers data for June was released by Labour Ministry yesterday.

With increase in DA, the pensioners will also gain as the benefit provided to them as dearness relief will be hiked to 107 per cent of basic pay.

The previous UPA government had increased DA to 100 per cent from 90 per cent with effect from January 1, 2014, on February 28 on the basis of agreed formula for revision of the allowance.

However, the central government employees’ union is not very enthused by the 7 per cent hike in the dearness allowance as their long pending demand of merger of DA with basic pay has not been given heed by 7th Pay Commission and the government.

“The erosion of value of wages is unbearable at 50 per cent dearness allowance. Now it will be 107 per cent. It is high time to merge DA with basic pay to provide relief to employees,” Confederation of Central Government Employees’ President KKN Kutty told PTI.

“We had submitted our memorandum in this regard to 7th Pay Commission. They forwarded it to Central Government.” He added that they have appraised the NDA government on the issue.

“But no decision has been taken so far,” he said.

With merger of DA with basic pay, the salary and allowances paid in proportion of basic pay are increased. As per earlier practise DA was merged with basic pay once it breached 50 per cent mark. But 6th Pay Commission has disallowed that.

Source: Hindu BusinessLine