Union Cabinet Poised to Approve DA Increase for Central Government Employees This Week
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Synopsis
The Union Cabinet is expected to approve a dearness allowance (DA) and relief (DR) hike for Central government employees and pensioners this week. The increase is projected at 2%, retroactive to January, with the formal establishment of the 8th Pay Commission also in the pipeline.
Key Takeaways
- DA and DR hike approval expected this week.
- Projected increase of 2% for DA.
- Hike implemented retroactively from January.
- Establishment of 8th Pay Commission is forthcoming.
- Employee forums seek merging of DA with basic pay.
New Delhi, March 10 (NationPress) The Union Cabinet is on the verge of approving an increase in dearness allowance (DA) and dearness relief (DR) for Central government personnel and pensioners this week, as reported by representatives of government staff union forums.
The adjustment in DA and DR is expected to be on the Cabinet's agenda since one of the two biannual hikes in these allowances is generally announced in March, with the other occurring in October before Diwali.
The DA and DR increments approved in March are applied retroactively from January.
“The announcement of the hike is anticipated in the upcoming meeting of the Union Cabinet,” stated Rupak Sarkar, the President of the Confederation of Central Government Employees and Workers.
He indicated that the dearness allowance increase might be around 2 percent, aligned with inflation based on the consumer price index for industrial workers, which has moderated this year compared to last year when DA was raised by 3 percent in October and 4 percent in March.
With the 3 percent increase in October of the previous year, the DA rose to 53 percent of the basic salary. Should the DA be augmented by 2 percent in the upcoming revision, it would rise to 55 percent of basic pay.
The government has also established the 8th Pay Commission, which received approval from the Centre in January this year, to reassess the wages and allowances of Central government staff.
The formal establishment of this commission, which will include the appointment of a Chairman and at least two members, is anticipated shortly. While DA and DR will continue to be adjusted biannually, this may be the last adjustment before the commission begins consultations with various stakeholders.
Employee forums have also requested the merging of the two components with the basic salary prior to the implementation of the next Pay Commission report. Under the 5th Pay Commission, the norm was to integrate the basic pay with DA once the key allowance exceeded 50 percent. The government had executed this integration in 2004. However, this practice was halted under the subsequent 6th and 7th Pay Commissions.
