Cabinet Approves 2% DA Hike for Government Employee and Pensioners article covers good news for central government employee, state government employee and pensioners. Dearness allowance reached 4% from existing 2 per cent. By this announcement, central government give benefits to 48.85 lakh employees and 55.51 lakh pensioners. For more detailed news go through article entitled Cabinet Approves 2% DA Hike for Government Employee and Pensioners.
Cabinet Approves 2% DA Hike for Government Employee and Pensioners
Narendra Modi government approved release of an additional installment of dearness allowance / dearness relief to employee and pensioners with effect from 1 January 2017.
DA / DR has been raised by 2% over the existing rate of 2%. Now total DA for government employee and DR for pensioners is 4 per cent of their basic pay.
This benefits is affected from 1 January 2017. So all government employee and pensioners gets arrears of remaining month. This hike is provided to government employee and pensioners to neutralist the impact of inflation.
This is the second phase of hike in DA. First government approves only 2% hike in dearness allowance and now with effect from 1 January 2017 they approved additional 2 per cent hike in DA as per recommendation of 7th Pay Commission. This hike is given as per agreed formula for 12 month average of retail inflation.
With this hike, impact on the exchequer on account of both DA / DR would be Rs. 5857 crore per annum.
The Central government union ans labor unions are not happy with this hike because this hike is not be able to offset the real impact of price rise.
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Article Title: Cabinet Approves 2% DA Hike for Government Employee and Pensioners
Article First Published on 16-03-2017.