New Delhi: It's time for pay hike for Central Government employees. The Union Cabinet on Thursday approved a 6 per cent hike in the Dearness Allowance and Dearness Relief for Central government employees and pensioners respectivey.
The bonanza that would entail a burden of Rs 2,189.96 crore during the rest of the current financial year and Rs 3,285 crore in a full year. The hike will take effect from July 1 this year, Information and Broadcasting Minister PR Dasmunsi said after the meeting.
The increase would add Rs 1,471.24 crore burden on the exchequer in the remaining part of this fiscal and Rs 2,206.86 crore in a full year. Government coffers will take a hit of Rs 718.72 crore in the rest of this financial year and Rs 1,078.08 crore in a financial year because of additional dearness relief to the pensioners, he said.
The government revises DA for its employees twice every year in January and July. Earlier, the government had merged 50 per cent of DA with the basic pay with effect from April 1, 2004.
The revision is carried out on the basis of changes in the consumer price index for industrial workers (CPI-IW). The 12-monthly average of the All India Consumer Price Index, on which calculation of DA is based, works out to be 587.62 points during the period ended June 2007, up 91.82 per cent over the base index of 306.33 points.
The rise and fall in index varies from centre to centre. The index remained stationary in centres, including Himachal Pradesh, Kolkata and Jamshedpur. It was up 3 points in Labac-Silchar region and 2 points in Mumbai.
The rise in the index was mainly on account of increase in prices of fruit and vegetables, pulses, wheat, jowar, dairy milk, onion, tea and electricity charges.
Comments
0 comment