Zee Media Bureau
New Delhi: In a move that could benefit 50 lakh employees and 30 lakh pensioners, the Union Cabinet may on Friday hiked dearness allowance to 100 percent from the existing 90 percent, a 10 percent increase.
The increase in DA comes ahead of the imposition of the model code of conduct by the Election Commission.
In September 2013, the government had hiked the DA by another 10 percent to 90 percent effective from July 1, 2013.
This would be the second double digit hike in a row and if hike, it would be effective from January 1 this year.
"The Union Cabinet will take a proposal to hike Dearness allowance for its employees and dearness relief for its pensioners to 100 percent this Friday as per agenda listed for the meeting," a source had said.
As per reports, it is also very likely that the Union Cabinet could approve a proposal to merge dearness allowance (DA) with basic pay. However, no date has been fixed for the merger.