GoI allows two per cent hike in DA of central government employees

This hike in DA or DR will benefit about 48.85 lakh central government employees and 55.51 lakh pensioners. The combined impact on the exchequer on account of both dearness allowance and dearness relief would be Rs 5,857.28 crore per annum and Rs 6,833.50 crore in the Financial Year 2017-18

Arnima Dwivedi
Published on: 16 March 2017 5:00 AM GMT
GoI allows two per cent hike in DA of central government employees
X
GoI allows two per cent hike in aearness allowance of central government employees

New Delhi: The Central government employees were gifted a two per cent hike in the dearness allowance (DA) and a four per cent increase in the dearness relief by the Government of India. The proposal regarding the hike was approved by the Union Cabinet led by Prime Minister Narendra Modi on Wednesday last.

The hikes will be taken into effect from January 1, 2017 and would be benefiting 48.85 central government employees and 55.51 lakh pensioners.

An official stated released by the GoI said, “The Union Cabinet chaired by Prime Minister Narendra Modi has approved release of an additional instalment of dearness allowance to central government employees and dearness relief to pensioner with effect from January 1, 2017.”

"The DA has been hiked by 2 per cent over the existing rate of 2 per cent of the basic pay and pension to compensate for price rise and it is in accordance with the accepted formula based on the recommendation of 7th pay commission," read the statement.

Other details:

  • This hike in DA or DR will benefit about 48.85 lakh central government employees and 55.51 lakh pensioners.

    The combined impact on the exchequer on account of both dearness allowance and dearness relief would be Rs 5,857.28 crore per annum and Rs 6,833.50 crore in the Financial Year 2017-18, for period starting from January 2017 till February 2018.

  • The hike in the DA has been calculated after taking average of Consumer Price Index of industrial workers for the past 12 months.
  • The Confederation of Central Government Employees had termed it as a meagre hike in view of actual rise in cost of living index.

    They have said the CPI-IW was far from reality and there was a lot of variation in the rates of price rise of commodities by Ministry of Agriculture.

Arnima Dwivedi

Arnima Dwivedi

A journalist, presently working as a sub-editor with newstrack.com. I love exploring new genres of humans and humanity.

Next Story