It looks like festival bonanza doesn’t seem to end for many lakhs of Central Government Employees and the Pensioners this year. The Union Cabinet on Thursday had approved hike of 2% DA ( Dearness Allowance) for the Central Government Employees and the Pensioners at a meeting. The announced hike will be effective from the month of July 2016.

This windfall decision by the Cabinet just ahead of Diwali festive will benefit 50 lakh Central Government employees and pensioners of 58 lakhs across the whole country.

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PTI Officially quoted on this matter saying that, “The proposal to provide 2% dearness allowance and dearness relief to Central Government employees and pensioners respectively, is listed on agenda of the Union Cabinet meeting scheduled for tomorrow,”

The DA (Dearness Allowance) hike is lower than that of demanded by the Trade Unions.

“The 12-month average of Consumer Price Index for Industrial Workers from 1 July 2023 to 30 June 2016, works out to be 2.92%. Therefore the unions had pressed for 3% DA. We are not satisfied with this,” K K N Kutty, President of Confederation of Central Government Employees, reported PTI on Wednesday said

The Government will increase DA basing on the 12-month average of Retail Inflation Rate and will not depend on or consider the price rise rate over a decimal point on deciding the Rate of DA.

The Seventh Pay Commission bonanza already had resulted in huge arrears disbursement for the government employees with the on-going festive season.


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