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Diwali Dhamaka


wealthymatters

Yesterday the Union Cabinet approved a 10% increase over the existing rate of 80%, in dearness allowance and dearness relief, which will benefit about 50 lakh central government employees and 30 lakh pensioners .

The increase will be applicable from July 1, which means the central government employees and pensioners will get a good lump sum during the festival season-a real Diwali Dhamaka.

There will be additional . 900 crores every month in the hands of central government employees and pensioners.Maybe this should help pump-prime the economy!

The increase is in accordance with accepted formula based on the recommendations of the Sixth Central Pay Commission.Under the current rules, the government uses CPI-IW data for past 12 months to arrive at the biannual dearness increase, which is computed as a percentage of basic salary. It was increased to 80% from 72% in April 2013, effective January 1 this year. After Friday’s increase, the amount rises to 90% of basic pay. This is the first double digit dearness allowance increase in about three years. The retail inflation for industrial workers between July 2012 and June 2013 was used to compute the increase in DA.

Just see how much salaries have had to increase just to keep up with inflation.

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About Keerthika Singaravel
Engineer,Investor,Businessperson

One Response to Diwali Dhamaka

  1. Pingback: The Best Is Yet To Be | wealthymatters

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