New Delhi: The Narendra Modi government is planning to increase the dearness allowance (DA) of central government employees by 6% from 113 per cent to 119 per cent. If cleared the move will benefit at least one crore government employees.
“The proposal to increase dearness allowance by six percentage points to 119 per cent is likely to be taken up by the Cabinet tomorrow,” a source said.
Earlier in April, the government had hiked DA by 6 per cent to 113 per cent of their basic pay with effect from January. DA is paid as proportion of the basic pay.
The proposed DA hike will take effect from July 1. As per the agreed formula, the DA rate increase is an average of 12-month consumer price index-industrial workers from July 1, 2014 to June 30, 2015.
The proposed hike is in accordance with the accepted formula based on the recommendations of the 6th Pay Commission, which will benefit 48 lakh government employees and 55 lakh pensioners.