Hike In DA From January 2016 For Central Government Employees May Be Announced Soon

Zee News has reported that hike in DA from January 2016 would be announced soon. Even as 7th Pay Commission Recommendations has taken into account the likely DA from January 2016 as 125% for the purpose of merging the same with basic pay with effect from 1st January 2016, increase in DA from January 2016 would be announced soon by Govt as reported by this television media.

If Govt issues orders for the hike in DA from January 2016 now, then Central Government Employees including Railway Employees, Defence Personnel and all Central Government Pensioners will be paid Dearness Allowance at the rate of 125% on the existing pay in pay band and grade pay till the implementation of 7th Pay Commission recommendations which is likely to be effective from 1st January 2016. Once 7th Pay Commission recommendations are implemented, increase in basic pay and Dearness Allowance on the same will have to be paid as arrears of pay.

Report of Zee News on the likely increase in DA from January 2016 is as follows

Narendra Modi government is likely to hike dearness allowance (DA) by 6 percent to 125 percent.

The likely increase in dearness allowance by six percent to 125 percent from existing 119 percent would benefit over 10 million central government employees and pensioners.

The new rate of DA will be implemented from January 1, 2016, which will be applicable for 4.8 million central government employees and 5.5 million pensioners. DA is paid as a proportion of basic pay of employees.

The proposal to hike DA is moved by the Finance Ministry on the basis of accepted formula for calculation. The Union Cabinet approves the DA hike for its employees.

The Centre revised DA twice in a year on the basis of one year average of retail inflation for industrial workers as per the accepted formula.

Earlier in September last year, DA was increased to 119 percent from 113 percent which was effective from July 1, 2015. In April last year, the government had hiked DA by 6 percentage points to 113 percent of their basic pay with effect from January 1, 2015