Zee Media Bureau
The government on Thursday approved a hike in dearness allowance (DA) to 107 percent from the existing 100 percent, benefiting around 30 lakh Centre's employees and its 50 lakh pensioners including dependents.
With increase in DA, the pensioners will also gain as the benefit provided to them as dearness relief will be hiked to 107 percent of basic pay.
The previous UPA government had increased DA to 100 percent from 90 percent with effect from January 1, 2014, on February 28 on the basis of agreed formula for revision of the allowance.
However, the central government employees' union is not very enthused by the 7 percent hike in the dearness allowance as their long pending demand of merger of DA with basic pay has not been given heed by 7th Pay Commission and the government.
With merger of DA with basic pay, the salary and allowances paid in proportion of basic pay are increased.
As per earlier practise DA was merged with basic pay once it breached 50% mark. But 6th Pay Commission has disallowed that.
