AFP The decision to hike DA for its employees and to provide dearness relief for pensioners, by 10 percent to 100 percent was taken by the Union Cabinet in its meeting held in New Delhi.
The Union Cabinet has approved the proposal to hike Dearness allowance for its employees and dearness relief for its pensioners to 100 per cent in its meeting held here, a source said.
This increase in the dearness allowance by the UPA-2 government comes ahead of the imposition of the model code of conduct by the Election Commission.
The code is likely to come into force with the announcement of the schedule for the forthcoming general elections in a week or so. Also, it would be the second double digit DA hike in a row.
The government had announced a hike of 10 percent to 90 percent in September last year, effective from 1 July, 2013.
the government uses Consumer Price Index-Industrial Workers data of the past 12 months to arrive at a quantum for the purpose of any DA hike.
According to the provisional data released by government on 31 January, the retail inflation for factory workers in December was 9.13 percent.
An official had said earlier that the preliminary assessment suggests that DA hike will not be less than 10 percent and would be effective from 1 January.