Dearness allowance hike will be 10 percent and would be effective from July 1, 2013
According to official source,
dearness allowance hike will be 10 percent and
would be effective from July 1, this year.
The sources further said the
exact amount of dearnessallowance, 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.
Sources said 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.
DA was hiked to 80 percent from 72 percent in April, 2013,
effective from January 1, this year. As per the practice, the government uses
CPI-IW data for past 12 month or a year to arrive at a number for the purpose
of any DA hike. Thus, the retail inflation for industrial workers between
July, 2012 to June, 2013 will be used to take a final decision