Release pending dearness allowance, central employees appeal to government

Release pending dearness allowance, central employees appeal to government

Finance Minister Arun Jaitley

New Delhi: The central government employees appealed to the Finance Minister Arun Jaitley to release the pending installment of dearness allowance (DA) to them as new financial year 2015-16 has also been started.

The central government employees’ bodies said 6 percent DA is due from January but the government has still not declared the hike of the dearness allowance (DA).

The biggest concern facing the central government employees is raising prices.

Inflation hits government employees badly as prices keep rising. The government employees end up spending more money for things that they could buy for les earlier. As prices rise, the purchasing power of money goes down too.

Inflation hits government employees with fixed incomes very badly. Accordingly, they demanded to hike dearness allowance for the little makeup of their financial situation.

The employees’ bodies are also pressing hard to merger of 50 percent DA with basic pay but it has not been given heed by the seventh Pay Commission as well as the government.

The merger of 50 percent DA was discontinued in the Sixth Pay Commission but the Fifth Pay Commission had recommended that if the DA crosses more than 50 percent then it should be clubbed with the basic pay.
The previous UPA government had always announced DA increasing with effect from January 1, in the month of March but the BJP led NDA government has not declared DA hike till date.

Source: http://www.centralgovernmentnews.com/

7CPC: Cabinet may approve 6% dearness allowance (DA) hike next week.

7CPC: Cabinet may approve 6% dearness allowance (DA) hike next week.

Cabinet may approve 6 percent DA hike next week

Finance Minister Arun Jaitley

New Delhi: The Union Cabinet is likely to approve hiking dearness allowance (DA) to 113 per cent from existing 107 per cent benefiting 30 lakh central government employees and 50 lakh pensioners in its meeting scheduled in next week.

“The Union Cabinet will take a proposal to hike Dearness allowance for its employees and dearness relief for its pensioners to 113 per cent in next week as per agenda listed for the meeting,” a source said.
The hike in DA would be effective from the January 1 this year.

As per practice, the government uses Consumer Price Index- Industrial Workers ( CPI-IW) data of the past 12 months to arrive at a quantum for the purpose of any DA hike.

Thus, the CPI-IW from January 1 to December 31, 2014 would be used to take a final call on the matter.
The CPI (IW) of the months January, February, March, April, May, June and July were 237, 238, 239, 242, 244, 246 and 252 respectively.

The consumer price index -industrial workers (CPI-IW) remained stationery at 253 for last five months August to December, 2014.

“The average of the consumer price index -industrial workers (CPI-IW) from January 1, 2014 to December 31, 2014 works out to be 6.3 per cent. Thus the Central government will hike dearness allowance for it employees by 6 per cent,” the source added.

However, the employees’ bodies are pressing hard to merger of 50 percent DA with basic pay but it has not been given heed by the seventh Pay Commission as well as the government.

The merger of 50 percent DA was discontinued in the Sixth Pay Commission but the Fifth Pay Commission had recommended that if the DA crosses more than 50 percent then it should be clubbed with the basic pay.

Source: Central Government News