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6 percent dearness allowance to government employees

Today, NDA Government has released 6 percent hike in dearness allowance to Central government employees. The union cabinet has approved 6 per cent hike in dearness allowance.

New DA rule which will benefit nearly 10 million central government staff will be implemented from January 1, 2016. “Average rate of Consumer Price Index-Industrial Labour from January to December, 2015 was 6.73 per cent. Thus, the Centre will increase dearness allowance by six percentage points to 125 per cent from existing 119 per cent as per accepted formula for calculation,” Confederation of Central Government Employees and Workers President KKN Kutty recently said. DA is paid as a proportion of basic pay of employees. The proposal to hike DA is moved by the Finance Ministry on the basis of accepted formula for calculation. The Centre revised DA twice in a year on the basis of one year average of retail inflation for industrial workers as per the accepted formula. Earlier in September last year, DA was increased to 119 per cent from 113 per cent which was effective from July 1, 2015.