Government hikes DA by 6% | Fusion - WeRIndia

Government hikes DA by 6%

Government hikes DA by 6%

Good news to central government employees and pensioners as they are going to get additional 6 per cent hike of their basic pay as dearness allowance. On the happy event of Holi festival, the decision of central government made all of its employees happy and cheerful. Currently, there are 50 lakh lakh central government employees and 58 lakh pensioners. All of them are going to be benefitted with the hike.

Indian government hiked dearness allowance (DA) by 6 per cent on Wednesday on the occasion of Holi festival. The decision of the Union Cabinet will benefit more than 1 crore central government employees including pensioners. 50 lakh central government employees and 58 lakh pensioners, will go up from the existing 119 per cent to 125 per cent.

Telecom minister Ravi Shankar Prasad said that the hike will be in effect from January 1, 2016 which costs the exchequer an additional Rs.14,724.74 crore this year out of which Rs.6,795.5 core will be spent on employees and the remaining Rs.7,929.24 crore on pensioners in 2016-17.

Dearness allowance (DA) is paid to reduce the effect of inflation to employees as a portion of basic pay. Pensioners get dearness relief.

DA will be revised twice in a year by the central government taking into account one year average of retail inflation for its employees. There is a formula to calculate the dearness allowance and it will be calculated accordingly.

In April last year, the government had hiked DA to 113 per cent of the basic pay with effect from January 1, 2015. Later it was increased to 119 per cent from 113 per cent, which came into force from July 1, 2015. Now with the new decision, it hiked to 125 per cent.

Image Credit: Photo by Sandra Seitamaa on Unsplash (Free for commercial use)

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