7th Pay Commission: Government may hike Dearness Allowance by at least 2%

Government employees and pensioners are likely to get a hike of 2-4% in dearness allowance (DA) , a report said. Centre may announce this decision later this month.

There are 50 lakh government employees and 58 lakh pensioners who are eligible for the DA. 

According to a PTI report, labour unions are not happy with the proposed hike saying it would not be able to offset the real impact of price rise.

Quoting Confederation of Central Government Employees' President K K N Kutty, the report said, " The dearness allowance as per the agreed formula by the Centre works out to be 2% which would be effected from January 1, 2017."

However, as per the report, he expressed dissatisfaction over the marginal hike. 

Kutty said that the federation in the next meeting of the national council would make a case for considering the fractions while fixing DA.

Last year, the government hiked DA by 6% to 125% of basic pay. The DA was later merged into the basic pay following the implementation of the 7th Pay Commission award, the report added.