HomeDearness AllowanceCentre may hike dearness allowance by 8% today

Centre may hike dearness allowance by 8% today

Union Cabinet is likely to approve today a proposal to increase dearness allowance (DA) to 80 per cent from existing 72 per cent benefiting about 50 lakh employees and 30 lakh pensioners of the central government.

“The Union Cabinet may consider the finance ministry proposal to increase DA in its meeting scheduled for Thursday,” a source said, adding the hike would be effective from January 1, 2013 and employees and pensioners would be entitled to arrears.

The hike would be effective from January 1, 2013 and the employees and pensioners would be entitled for arrears, he said.

The government had hiked DA to 72 per cent in September last year, which had come into effect from July 1, 2012.

As per the practice, the DA is merged with basic pay when it breaches the 50 per cent cap. This helps employees get higher allowances as those are paid as proportion of the basic pay.

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3 COMMENTS

  1. Sir, I am working in a Govt. undertaking Limited company in CDA scale. There, in this company two type employees CDA and IDA. Today IDA grade emoployee is getting gross lower salary than thier one step lower rank. Is is possible to get a lower grade employee get more salary than higher grade employee in same catergory. Second thik is IDA scale employee is getting transport allower full in basket alloweance in Delhi NCR while CDA employee is getting half transport in thier salry.
    Third thik is that there should be CDA employee DA based pension who has appointed before 1999. There is no provision of pension. Fifth think is annual profit of the company is given as PRP to only IDA employee.

    Sir with humble request I would like to know is it possble to make difference in the same company employee.

  2. sir so many central government employees are waiting for regarding DA generally jan and jul they will be announcing march and sep payment is giving apr salary and oct salary but this time is too late since not announced employees and pensioner r waiting for regarding DA thanks. v.v. rao

  3. thanks for the hike and hype for the delay.
    A railway employee on deputation was relieved to railways on the day of superannuation and his pension is fixed by railways but the pension was fixed on the assumed pay in the cadre not on the actual pay received by him for the last month of retirement in contravention to pension rules which stipulates that pension shall be fixed on the last emoluments drawn immediately preceding the date of while CPO of the railway agrees with this view of of employee accounts is not ready to see the factual rule position. Can you tell me what is correct position and who is the comepetant authority to decide what should be the pension as the railway pension rules
    hope you will clarify
    VRao

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