M A I N   N E W S

7% DA hike for Central Govt staff likely

New Delhi, August 31
The government is likely to approve a hike in dearness allowance (DA) to 107% from the existing 100%, benefiting around 30 lakh Central employees and 50 lakh pensioners, including dependents.

"The average rate of retail inflation for industrial workers from July 1, 2013 to June 30, 2014 works out to be 7.25%. Thus the Central Government will hike dearness allowance for it employees by 7%," an official said.

He said the Finance Ministry will now put a Cabinet proposal for approval of 7% DA hike from July 1 this year as the revised Consumer Price Index-Industrial Workers data for June was released by the Labour Ministry on Saturday.

With increase in DA, the pensioners will also gain as the benefit provided to them as dearness relief will be hiked to 107% of the basic pay.

The previous UPA government had increased DA to 100% from 90% with effect from January 1, 2014, on February 28. — PTI