The Union Cabinet led by Prime Minister Narendra Modi on Saturday approved 2% dearness allowance (DA) hike for central govt employees, pensioners, sources told Times Now.
Prime Minister Narendra Modi on the DA hike said, "hike should be publisized in all election bound states."
The decision of Dearness Allowance (DA) hike is linked to inflation and follows a set formula based on the 12-month average of the CPI-IW (Consumer Price Index for Industrial Workers). DA increase is calculated by multiplying the basic salary by the new DA percentage.
Central government workers and pensioners have waited longer than usual this year, with no announcement regarding the Dearness Allowance (DA) in February and March.
Explaining the rationale, Adhil Shetty, CEO, BankBazaar told, “DA revisions are formula-driven and linked to the 12-month average of the CPI-IW, and current trends continue to support a modest increase of around 2% to 3%, which would take the overall DA level closer to 60% or slightly above. The trajectory itself remains consistent. DA has moved steadily from 2% in 2016 to nearly 60% today, reflecting cumulative inflation over the past decade.”
Last month, Madhya Pradesh cabinet had approved a 3 per cent hike in dearness allowance (DA) for government employees and pensioners and also cleared development and construction works costing Rs 6,940 crore, officials had said.
Central government employees have made a strong case for a comprehensive revision in salaries, pensions, and service rules under the 8th Central Pay Commission. In a detailed memorandum submitted on April 14, the staff side of the National Council–Joint Consultative Machinery (NC-JCM) has outlined wide-ranging demands that go far beyond routine pay revisions. At the centre of the proposal is a call to raise the minimum basic salary to Rs 69,000, along with a fitment factor of 3.83.
The employees’ body has also suggested reinstating the earlier practice of merging dearness allowance (DA) with basic pay once it reaches 25 per cent, a move aimed at better reflecting inflationary realities.
The move comes against the backdrop of growing pressure from employee unions for sweeping changes under the proposed 8th Pay Commission.
In adetailed memorandumsubmitted on April 14, the staff side of the National Council–Joint Consultative Machinery (NC-JCM) has outlined wide-ranging demands that go far beyond routine pay revisions. At the centre of the proposal is a call to raise the minimum basic salary to Rs 69,000, along with a fitment factor of 3.83.
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