In the recent decision made by the approval of Union Cabinet in association with the 7th Pay Commission, Dearness Allowance(DA) has been increased by 2% as per the revised salary of the central government employees and pensioners. In the recent past, the Cabinet had already given an approval of increasing DA from 6% up to 125% under the basic pay.

2%-hike-in-dearness-allowance-for-central-government-employees-and-pensioners
A man is taking a salary from the counter.

Image Source: IBTimes 

Definitely a welcoming news for all the employees during the auspicious festive season for almost 58 lakhs beneficiaries which will come as Diwali gift from the Centre. The approval got finalised in a meeting held on Thursday in New Delhi where the following 2% hike in the salary will be effective from 1st July 2016. The respective decision of increasing the Dearness Allowance and Dearness Relief is given so as to neutralise the impact of price rise on their earnings.

According to reliable sources quoted to PTI, The proposal to provide 2% dearness allowance and dearness relief to central government employees and pensioners respectively, is listed on agenda of the Union Cabinet meeting scheduled for tomorrow. 

Although, not-so-happy reaction came from the employees’ side as they expected it to increase at least 3% rather than 2% of the Dearness Allowance. The matter has been re-directed to the Cabinet thus pleading for an assurance of the expected hike. The recently updated 7th Pay Commission included all the hikes, revised salaries and better pensions for civic as well as Army personnel.

The verdict came from the President of Confederation of Central Government Employees as he reverted as the minimum increase in DA is entirely based on 12-months average of Consumer Price Index in the retail inflation for the Industrial Workers’ which has been outstood to be applicable from July 2015 to June 2016, thus being at 2.92%. The revised form should be at least 3% and not or else it would a deteriorated form rather than hiked.

At present, none of the central government employees association committee is not at all satisfied with the Union Cabinet decision.

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