7th Pay Commission: Cabinet approves additional 2% Dearness Allowance (DA) for Central Government employees

7th Pay Commission: Cabinet approves additional 2% Dearness Allowance (DA) for Central Government employees

NJCA convenor Shiv Gopal Mishra was expecting a hike of at least 3 per cent.

New Delhi, Mar 15: Union Cabinet, headed by Prime Minister Narendra Modi, has given the nod for additional 2 per cent increase in Dearness Allowance (DA) for Central Government employees. Along with DA, the Dearness Relief (DR) for pensioners has also been increased by 2 per cent with effect from January 1, 2017. Although the DA has been increased, Committee of Allowances headed by Finance Secretary Ashok Lavasa is yet to submit its report on other allowances, which were to be hiked following the implementation of 7th Pay Commission.

National Joint Council of Action (NJCA), the joint unions’ body leading the negotiation on behalf of Central Government employees, had urged the government to raise the DA by up to 4 per cent.

Reports, citing Finance Ministry sources earlier in the month, had claimed that DA would be hiked by 2 per cent. Dismissing the claim, NJCA convenor said, “The reports are absolutely baseless. The Dearness Allowance would  be raised by at least 3 per cent. That is the least what employees deserve.”

K K N Kutty, President of the Confederation of Central Government Employees, had also expressed dissatisfaction over the speculation of mere 2 per cent DA hike, saying, “it would not be able to offset the real impact of price rise”.

Central Government employee have been awaiting the hike in allowances for over eight months. While the DA has been hiked, the decision on other allowances would be taken after Ashok Lavasa-led committee submits its report.

Although rumours slated April 1 as the date of allowance hike, it could be likely be delayed as Committee of Allowances has made no indication of submitting its final report within the next couple of days. Arjun Singh Meghwal, MoS, Finance, while answering a query in Lok Sabha on Friday, confirmed that Committee of Allowances has not submitted its report yet to the Finance Ministry.

Source:India.com