Govt approves 6 per cent DA for its employees
The central government has approved six per cent dearness allowance for its employees to counter the affect of increasing inflation. With this decision, the rate of DA has become 51 per cent of the basic pay.
IT IS time for babus to rejoice as the central government today hiked the dearness allowance (DA) of its employees by 6 per cent. This move will benefit around 50 lakh employees and 38 lakh pensioners, who have been hit by rising inflation in recent months. The government will have to spend an additional Rs 5,715 crore every year to support this hike, which has taken the dearness allowance being paid to employees to 51 per cent. However, this fiscal the government will have have to shell out Rs 6,668.52 crore, after this additional DA is factored for the current three months from January 1 to March 31.
DA is given to government employees to offset the affect of rising prices of various goods and services. Before the hike, the rate of DA was 45 per cent of basic pay, which now becomes 51 per cent of basic pay.
The calculation of DA has been done in accordance with the formula prescribed by the Sixth Pay Commission. Every year, the union government revises the DA two times and the basis of this revision is the Consumer Price Index (Industrial Worker), which stood at 9.30 in January.
Login
 Login through Social ID
|
Not finding what you are looking for? Search here.
