If we believe on media reports Cabinet may show green signal to the hike in Dearness Allowance of 8% to all Central Government Employees, Pensioners and Family Pensioners today.
This decision would make total Dearness Allowance payable to Central Government Employees and Pensioners at 80% with effect from 1st January 2013.
The Extract of report published in this regard in Indian Express is as follows
Union Cabinet is likely to approve tomorrow a proposal to increase dearness allowance (DA) to 80 per cent from existing 72 per cent benefiting about 50 lakh employees and 30 lakh pensioners of the central government.
“The Union Cabinet may consider the finance ministry proposal to increase the DA by 8 per cent to 80 per cent in its meeting scheduled for tomorrow”, a source said.
The hike would be effective from January 1, 2013 and the employees and pensioners would be entitled for arrears, he said.
The government had hiked DA to 72 per cent in September last year, which had come into effect from July 1, 2012.
“It is good that they are increasing DA. We demand that they should merge up to 50 per cent DA with the basic pay as per the practice and set up the seventh pay commission at the earliest”, Secretary of Confederation of Central Government Employees, K K N Kutty said.
As per the practice, the DA is merged with basic pay when it breaches the 50 per cent cap. This helps employees get higher allowances as those are paid as proportion of the basic pay. PTI
Source : The Indian Express
Update: Decision on hiking dearness allowance deferred
It is reported that since Finance Minister Shri.P.Chidambaram is not available the decision to consider Central Government Employees and Pensioners DA matter was not taken in today’s Cabinet Meeting. This information was given by Shri.Manish Tewari, Broadcasting Minister after the meeting.
Based on Consumer Price Index for Industrial Workers which is used for calculating Dearness Allowance for Central Government Employees and Pensioners, total DA eligibility with effect from 1st January 2013 works out to 80%. As of now, Central Government Employees and Pensioners are paid DA @ 72% with effect from July 2012. Hence the net increase in DA would be 8%.