Dearness Allowance hiked by 2% but labour unions say it's not enough

Dearness Allowance which is given generally to the employees to cope up with the inflated prices of the market was hiked by 6% to 125% of basic pay earlier in the previous year.

It further said that the increase is as per the accepted formula, which is based on the recommendations of the 7th Central Pay Commission. Suggestions related to higher allowances were referred to Ashok Lavasa committee. The DA was earlier 2% and now it has been increased to 4%. Since the government has already hiked the dearness allowance by 2% in October past year from 1 July 2016, it will now raise it further by 2%.

However, the government is yet to take a decision on raising allowances of Central government employees as recommended by the 7th Central Pay Commission (CPC).

The official communication released by the Union Government reads, "The Union Cabinet chaired by Prime Minister Narendra Modi has approved release of an additional installment of dearness allowance to central government employees and dearness relief to pensioner with effect from January 1, 2017".

However, employees' unions said the hike was unsatisfactory as the cost of living has gone up significantly in recent years.

President of the Confederation of Central Government Employees, K K N Kutty, had also expressed similar dissatisfaction over speculative reports and was quoted by the PTI where it said, "It would not be able to offset the real impact of price rise".

The hike is going to benefit around 50 lakhs central government employees and 58 lakhs pensioners.

Almost 47 lakh Central Government employees, along with 53 lakh pensioners are been eagerly waiting for some latest development.

  • Joanne Flowers