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DA may be hiked by 4%, gross salaries set to go up 10%
New Delhi, Jan 18: After the give-aways to industry and agriculture, a 4.0 per cent hike in dearness allowance and merging 50 per cent of DA with basic salary is likely for government employees ahead of the elections.
New Delhi, Jan 18: After the give-aways to industry
and agriculture, a 4.0 per cent hike in dearness allowance and
merging 50 per cent of DA with basic salary is likely for
government employees ahead of the elections.
The proposed DA hike and the resultant rise in gross salaries by about 10 per cent would cost the exchequer about Rs 1,000-1,500 crore during 2003-04, official sources said.
Top finance ministry officials are keeping mum before a final decision is taken by the cabinet at its next meeting.
"DA of government employees is normally hiked in January and July every year. It was last increased from 55 to 59 per cent in July 2003. So, it is likely to be increased this month by another 4.0 per cent," official sources said.
Government also plans to merge 50 per cent of the DA with the basic salary, sources said.
This would be in line with the recommendation of the fifth pay commission, which had suggested that DA should be merged with basic after it crosses the 50 per cent mark.
The remaining 13 per cent of the DA, along with 30 per cent house rent allowance (HRA) and other allowances linked to basic, would be calculated on the combined figure of basic.
This would mean about 10 per cent rise in the gross salaries of government employees, sources said, adding there was no proposal for setting up another pay commission.
"Government intends to carry out these measures (merging DA and a hike by 4.0 per cent) so as to stump out the possibilities of formation of the sixth pay commission," sources said.
Bureau Report
The proposed DA hike and the resultant rise in gross salaries by about 10 per cent would cost the exchequer about Rs 1,000-1,500 crore during 2003-04, official sources said.
Top finance ministry officials are keeping mum before a final decision is taken by the cabinet at its next meeting.
"DA of government employees is normally hiked in January and July every year. It was last increased from 55 to 59 per cent in July 2003. So, it is likely to be increased this month by another 4.0 per cent," official sources said.
Government also plans to merge 50 per cent of the DA with the basic salary, sources said.
This would be in line with the recommendation of the fifth pay commission, which had suggested that DA should be merged with basic after it crosses the 50 per cent mark.
The remaining 13 per cent of the DA, along with 30 per cent house rent allowance (HRA) and other allowances linked to basic, would be calculated on the combined figure of basic.
This would mean about 10 per cent rise in the gross salaries of government employees, sources said, adding there was no proposal for setting up another pay commission.
"Government intends to carry out these measures (merging DA and a hike by 4.0 per cent) so as to stump out the possibilities of formation of the sixth pay commission," sources said.
Bureau Report