PSU staff gets 5% DA hike as shield from scalding inflation
The government has decided to increase the rate of dearness allowance (DA) for PSU staff (accepting industrial dearness allowance pattern) by 5% to 84.3% from the existing 79.3%.
By Niranjan Bharati, ET Bureau |
NEW DELHI: The government has decided to increase the rate of dearness allowance (DA) for PSU staff (accepting industrial dearness allowance pattern) by 5% to 84.3% from the existing 79.3%. The new rates would be applicable from July 1. The step has been taken to provide interim relief to the employees at a time when living cost is rising sharply owing to higher inflation. The government had earlier raised the DA by 6% for PSU officials (accepting central dearness allowance pattern) in April.
���The revised rates are in accordance with the increase in average weight of the All-India Consumer Price Index (AICPI) in the last few months, based on which the government has decided to provide interim relief to the workers,��� a department of public enterprises (DPE) official said. An official memorandum regarding the raise in DA is being sent to the ministries and the PSUs concerned, he added. The decision has been taken on July 14.
The revised DA rates would be applicable to the board-level posts and below board level posts including non-unionised supervisors in the central public sector enterprises (CPSE). These would, however, not be applicable to unionised workers.
The new rates are applicable in case of employees opting for industrial dearness allowance (IDA) pattern, whose pay has been revised with effect from January 1997. In the case of CPSEs that have not allowed the benefit of merger of 50% of DA with basic pay, the DA payable will be enhanced to 84.4% while, in the case of CPSEs that have allowed the benefit of merger of 50% of DA with basic pay, the DA payable would be enhanced to 34.4%.
CPSE staff have the option of choosing the IDA pattern or the central dearness allowance (CDA) pattern. The CDA pattern employees are governed by a separate high-powered committee recommendations.
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