Central govt. employees DA hiked by 4%
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New Delhi, Sept 29: The Union Cabinet has increased the Dearness allowance (DA) of the Central Government Employees by 4 percent taking it effectively to 38 percent from 34 percent. Over 50 lakh central government employees and 62 lakh pensioners are likely to benefit from the current hike.
The Union Cabinet which is slated to meet today could give its approval to hike the inflation-linked allowance for government employees. The meeting will be presided over by Prime Minister Narendra Modi.
After today's hike of 4 percent, the total DA paid to government employees will reach 38 percent. DA is a part of the salary which is calculated as a specific percentage of the basic salary which is then added to the basic salary. The DA hike will result in an increase in wages for approximately 52 lakh Central government employees. State governments are also likely to follow suit. The hike in DA will come as a major relief to workers amid skyrocketing inflation. The DA is revised by the government usually twice a year -- January and July. Apart from the DA hike, the Union Cabinet could also decide to extend the PM Garib Kalyan Anna Yojana for another 3 months till December. The cost to the state exchequer will be around Rs 40,000 cr.
The Union Cabinet has also approved many railway redevelopment projects also. The cabinet has approved a production-linked bonus for railway employees. For non-gazetted employees, a proposal for a 78-day bonus has been received. An estimated 11 lakh employees will benefit from it. The additional cost for Railway will be around Rs 2000 cr.