Govt approves 7% DA hike; raises it to 107% from July 1

Posted By: Religare
Subscribe to GoodReturns
For Quick Alerts
ALLOW NOTIFICATIONS  
For Daily Alerts

    Govt approves 7% DA hike; raises it to 107% from July 1
    The Government has approved 7 per cent hike in dearness allowance (DA), taking it to 107 per cent of basic pay, a move that will benefit around 30 lakh central employees and 50 lakh pensioners including dependents, reported PTI.

    "The Union Cabinet chaired by Prime Minister Narendra Modi, gave its approval for the release of an additional installment of DA to general government employees and Dearness Relief (DR) to pensioners with effect from July 1, 2014. This is an increase of 7 per cent over the existing rate of 100 percent of the Basic Pay/Pension, to compensate for price rise," a press statement said here.

    The increase is in accordance with the accepted formula, which is based on the recommendations of the 6th Central Pay Commission, it said.

    The combined impact on the exchequer on account of both DA and DR would be about Rs 7,691 crore per annum and Rs 5,127 crore respectively in the financial year 2014-2015 (for eight months -- July, 2014 to February, 2015), it added.

    As per the practice, the dearness allowance is worked out on the basis of 12 month average of Consumer Price Index for Industrial Workers (CPI-IW).

    The average rate of retail inflation for industrial workers from July 1, 2013 to June 30, 2014 was 7.25 percent. Therefore, the central government decided to hike dearness allowance for it employees by 7 per cent.

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

    Company Search
    Enter the first few characters of the company's name or the NSE symbol or BSE code and click 'Go'

    Find IFSC

    Get Latest News alerts from Goodreturns

    We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more