This is the time to get the freebies as general elections are nearby. People were expecting something from the government. After the people friendly interim financial budget, government is working on this mega schema. All the government employees are lured before the elections with a 10% hike in DA.
Now what is DA? Dearness Allowance (DA) is a salary component which is given to government employees to counter living adjustments. It varies for people living in different locations, like rural or urban. Urban government employees get more DA than Rural government employees. Usually DA is announced twice in a year. As per the sources a 10% hike in DA will be soon announced which would be effective from January 1 2014. Cabinet had already raised DA by 10 percent in September 2013 to be effective from July 2013
These two hikes will make DA almost 100% of the basic pay; this may lead to a merger of DA with the Basic pay. As per the basic understanding DA should merge with Basic it is crosses more than 50%. DA was merged with basic pay in Fifth pay commission. Sixth pay commission overlooked these changes. Seventh pay commission will surely have this merger this will lead to about 30-35 percent of salary hike to all the salaried and pensioners of government organization.
This will affect almost 50Lakh government employees and 30 Lakh pensioners. This surely will affect the government budget but will be very good news for the government employees.
But make it clear this will be a recommendation in front of the Planning Commission and if the cabinet approves it will have an affect only after seventh pay commission is implemented. This twice double digit hike if happens would be the first time ever in the history. Keep your fingers crossed for the good news.