Cabinet okays 6% DA for govt staff
The government today approved a proposal to increase dearness allowance (DA) for its employees by 6 per cent to make it 119 per cent.
The decision, which is set to benefit over one crore government employees and pensioners, was taken at a meeting of the Union Cabinet chaired by Prime Minister Narendra Modi. There are about 50 lakh government employees and 56 lakh pensioners.
The Union Cabinet also gave its approval for the National Offshore Wind Energy policy and the coal linkage for the Barh power plant of the NTPC in Bihar.
Making the announcement after the meeting, Finance Minister Arun Jaitley said the DA hike would take effect from July 1.
In April, the government had hiked DA for the staff by 6 per cent (making it 113 per cent of the basic pay) with effect from January.
As per the agreed formula, the DA rate increase is an average of 12-month consumer price index for industrial workers from July 1, 2014, to June 30, 2015. The hike is in accordance with the accepted formula based on the recommendations of the Sixth Pay Commission.
The combined impact on the exchequer on account of both dearness allowance and dearness relief will be around Rs 6,655.14 crore per annum and Rs 4,436.76 crore in the financial year 2015-16 (for a period of eight months from July 2015 to February 2016).
The National Offshore Wind Energy policy would provide the roadmap for development of such plants in the country.