Media reports suggest that the Dearness Allowance hike may be announced this month itself. According to official source, dearness allowance hike will be 10 percent and would be effective from July 1, this year. Sources added that since the revised estimate for the month of June is available, the Finance Ministry would soon prepare a proposal for the purpose for seeking Union Cabinet nod.
They further said the proposal will be moved this month. There would be a double digit hike in DA after about three years. It was last in September, 2010, that the government had announced a hike of 10 percent to be given with effect from July 1, 2010.
The sources further said the exact amount of dearness allowance, as a proportion of basic pay, works out to over 90 percent after factoring in the revised all India Consumer Price Index for Industrial Workers (CPI-IW) for June.
According to revised data released on August 30, retail inflation for factory workers for June stood at 11.63 percent, higher than provisional estimate of 11.06 percent for the month released on July 31.
Meanwhile the speculations about the DA from January 2014 has started. As per the initial indications, it is estimated that the DA from Jan'14 will be 100% or more. Read : CPI-IW : July'13 up by 4 points, at 235. January 2014 DA likely to cross 100%
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