News: 8% DA increase on the cards for central govt staff

#Updates

8% DA increase on the cards for central govt staff

In the crucial year before 2014 polls, around 50 lakh central government employees and 30 lakh pensioners are expected to get 8% dearness allowance (DA), highest in the last couple of years. The increase in the allowance is expected to cost the government around 5,200 crore and it would mean that dearness allowance would be 80 per cent of the basic pay. The last increase in dearness allowance was in September was 7% preceded by a 6% increase. The proposal has wider ramifications as the state governments normally adopt the Central increase in dearness allowance for its employees. 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.

In the crucial year before 2014 polls, around 50 lakh central government employees and 30 lakh pensioners are expected to get 8% dearness allowance (DA), highest in the last couple of years. The increase in the allowance is expected to cost the government around 5,200 crore and it would mean that dearness allowance would be 80 per cent of the basic pay. The last increase in dearness allowance was in September was 7% preceded by a 6% increase. The proposal has wider ramifications as the state governments normally adopt the Central increase in dearness allowance for its employees. 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.

Source: Hindustan Times

 

Topics: #Updates, C-Suite

Did you find this story helpful?

Author

QUICK POLL

What is the one top talent trend you are looking forward to in 2020?

On News Stands Now
q_auto,f_auto/v1578388682/mag-january-2020.png

Subscribe now to the All New People Matters in both Print and Digital for 3 years.

.

Subscribe
And Save 59%

Subscribe now

How likely are you to recommend our content to a friend or colleague?

01
10
Selected Score :