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Dearness allowance likely to be hiked by the Central Government of India
Posted on: 20/Feb/2016 10:17:34 AM
The Central Government of India revises DA twice in a year on the basis of one year average of retail inflation for industrial workers as per the accepted formula. Earlier in September last year, DA was increased to 119 per cent from 113 per cent which was effective from July 1, 2015.
The Centre is likely to hike dearness allowance (DA) to 125 per cent from existing 119 per cent, which would benefit its over 10 million employees and pensioners
Confederation of Central Government Employees and Workers President K K N Kutty said Average rate of Consumer Price Index-Industrial Labour from January to December, 2015 was 6.73 per cent. Thus, the Centre will increase dearness allowance by six percentage points to 125 per cent from existing 119 per cent as per accepted formula for calculation.
The new rate of DA will be implemented from January 1, 2016, which will be applicable for 4.8 million central government employees and 5.5 million pensioners. DA is paid as a proportion of basic pay of employees.
The proposal to hike DA is moved by the Finance Ministry on the basis of accepted formula for calculation. The Union Cabinet approves the DA hike for its employees.
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