10% DA hike for
Central government employees w.e.f 01 July 2013
Union Cabinet on 20 September 2013 (Friday)
approved a double-digit increase of 10% in dearness allowance from existing 80%
to 90 per cent, benefiting 50 lakh Central government employees and 30 lakh
pensioners, with effect from July 1, 2013.
Significantly, the double-digit increase in
DA has come after a gap of about three years. Since the government uses CPI-IW
(Consumer Price Inflation – Industrial Workers) data for the previous 12 months
to arrive at a figure for computation of any increase in DA instalment, the
percentage hike is based on the retail inflation data for July 2012-June 2013.
The previous DA hike of 10 per cent was in September 2010 when the government
announced an additional instalment given with effect from July 1 that year.
In April this year, the government
announced DA increase from 72 to 80 per cent with effect from January 1, 2013.
Official Release on PIB read as follows:
Release of
additional installment of dearness allowance to Central Government employees
and dearness relief to Pensioners, due from 1.7.2013
The Union Cabinet today approved the
proposal to release an additional installment of Dearness Allowance (DA) to
Central Government employees and Dearness Relief (DR) to pensioners with effect
from 01.07.2013, in cash, at the rate of 10 per cent increase over the existing
rate of 80 per cent.
Hence, the Central Government employees as
well as the pensioners are entitled for DA/DR at the rate of 90 per cent of the
basic with effect from 01.07.2013. The increase is in accordance with the
accepted formula based on the recommendations of the 6th Central Pay
Commission.
The combined impact on the exchequer on
account of both dearness allowance and dearness relief would be of the order of
Rs. 10879.60 crore per annum and Rs. 7253.10 crore in the financial year
2013-14 ( i.e. for a period of 8 month from July, 2013 to February 2014).
Official order from
finmin is expected soon and the same will be posted in this blog immediately on
release by finmin. Keep Visiting!!!
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