Central Government likely to clear 10% hike in Dearness Allowance

DEARNESS ALLOWANCE 2010

Keeping abreast with the inflationary pressures, the Centre is likely to approve a 10 per cent increase in dearness allowance for central government employees and pensioners, taking the DA to 45 per cent of the basic salary.

Sources said that about 50 lakh employees and 38 lakh pensioners would get the increase with effect from last July, as is usual.

Last March, the employees got an eight percent increase from January even though inflation ranged over 10 per cent in the previous months. This second instalment is awaited with expectations as when DA crosses 50 per cent next year, all allowances will get a hike up to 25 per cent as per the 6th Central Pay Commission recommendations.

The proposed double-digit hike, to be approved by the Cabinet tomorrow, is considered large as the employees have been expecting about nine percent rise based on the All India Consumer Price Index Number for Industrial Workers (Base 2001) for the past four month.