Announcement of hike in Dearness Allowance effective from July 2016 is delayed inordinately

| October 15, 2016

7th Pay Commission: Announcement of hike in Dearness Allowance to be delayed due to Arun Jaitley’s foreign trips

 The crucial announcement, post 7th Pay Commission recommendations, regarding hike in dearness allowance (DA) possibly by 2 per cent is set to be delayed by 7 to 10 days due to foreign visit of Union Finance Minister Arun Jaitley.
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New Delhi, Oct 4: The crucial announcement, post 7th Pay Commission recommendations, regarding hike in dearness allowance (DA) possibly by 2 per cent is set to be delayed by 7 to 10 days due to foreign visit of Union Finance Minister Arun Jaitley. Arun Jaitley was expected to move a proposal of hike in DA on the basis of accepted formula for calculation under the 7th Pay Commission recommendation. But the Finance Minister has a busy schedule ahead which is bound to delay the announcement of hike in dearness allowance. The 7th Pay Commission recommended the merging of 125 percent dearness allowance into the basic pay.

The government usually issues Dearness Allowance hike notification in September, which come into effect from the month of July. But this year, the government hasn’t issues DA notification till now because the Finance Minister Arun Jaitley couldn’t move the proposal to revise DA due to his busy schedule. On Monday, Arun Jaitley went to Canada for three-day visit. After Canada, Jaitley will visit USA, where he will stay for seven days. It means, the proposal regarding hike in DA won’t get nod of Union Cabinet before  October 10.

According to reports, the Central government is likely to hike dearness allowance (DA) by 2 per cent since the 7th Pay Commission recommended the merging of 125 percent dearness allowance into the basic pay. The 7th Pay commission recommended new pay matrix, based on the Consumer Price Index 261.42. The government will use the data of Consumer Price Index- Industrial Workers ( CPI-IW) from July 1, 2015 to June 30, 2016. Last times, the government had increased DA by 6 percentage points from 119 to 125.

The government announced to implement 7th Pay Commission’s recommendations for central government employees on July 29. The implementation of the 7th pay commission will impact some 47 lakh central government employees and 53 lakh pensioners. According to the 7th Pay Commission notification, central government employees will get 14.27 per cent hike in basic pay at junior levels, which is the lowest in 70 years. The Cabinet also approved the increase in minimum pay Rs 18,000 from existing Rs 7,000.

The 7th pay commission recommended abolition of 51 allowances and subsuming 37 others out of 196 allowances. However no final decision has been taken on the allowances by the government till now. The allowances had been a major bone of contention amongst majority of the central government employees.

Category: News, Seventh Pay Commission

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