The Union Cabinet today approved 2% hike in Dearness Allowance/Dearness Relief for government employees and pensioners from January 1, 2017. With the hike, the current DA stands at 4%
As per an agreed upon formula, the Centre hikes the allowance taking 12-month average of retail inflation. The DA is reounded off to the lower number, in the sense that rate beyond a decimal point is ignored.
The Confederation of Central Government Employees President K K N Kutty had earlier said the dearness allowance as per the agreed formula by the Centre works out to be 2 per cent which would be effected from January 1, 2017. However, Kutty expressed dissatisfaction over such a "meagre" hike saying that the consumer price index for industrial workers (CPI-IW) which is an agreed benchmark for increasing dearness allowance is far from reality.
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