5% hike in dearness allowance of centre, state govt employees

Govt office
File photo of people working in a government office.

Kozhikode: The centre and state government employees, including teachers, would get a five per cent hike in dearness allowance (DA). The hike in DA would be effective from July 2019.

The hike comes as the annual average of the All India Consumer Price Index (AICPI), used to calculate the DA, has increased from 294.83 points to 306.08 points. This is the biggest rise in five years.

With this, the DA of the central government employees would increase from 12 per cent to 17 per cent. For the state government employees, it would rise from 23 per cent to 28 per cent. Though the central government employees have been receiving the DA of 12 per cent, the state employees were getting only 20 per cent even though they are entitled to get 23 per cent. The three per cent hike which was effective from January to June was the outstanding amount.

The centre is likely to announce the new DA hike in September. If the state government's announcement gets delayed, the outstanding amount would rise to eight per cent.

In reality, the DA should be hiked to 17.08 per cent and 27.58 per cent for the centre and state respectively. The state's DA figure of 27.58 per cent has been rounded off to 28 per cent.

The new pay revision for the state government employees was to come into effect from July 2019.

If the usual procedures are followed, the 28 per cent of the DA would be added to the basic salary and the new pay would be determined by taking into consideration the service weightage.

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