7th Pay Commission: Central Government employees likely to protest over 2 per cent Dearness Allowance hike

After no hike in Transport Allowance, Government reportedly decided to increase DA by 2 per cent.

By Mohammed Uzair Shaikh | Updated: March 7, 2017 

7th Pay Commission was scheduled to be implemented from Jan 1, 2016. Allowance hike is still awaited.

New Delhi, Mar 6: The Committee on Allowances for 7th Pay Commission, under Finance Secretary Ashok Lavasa has reportedly increased the Dearness Allowance (DA) by 2 per cent. However, the Central Government employee unions are likely to protest over the meagre hike. Confederation of Central Government Employees President KN Kutty also expressed displeasure over the 2 per cent DA hike, stating that it would fail to offset the real impact of price rise.

Sources close to National Joint Council of Action (NJCA), leading the campaign to address anomalies on behalf of Central Government employees, have also indicated disappointment over the lacklustre increase in DA, after much await by the employees. However, NJCA is yet to reveal their next plan of action. India.com attempted to reach to NJCA convenor Shiv Gopal Mishra, but he was unavailable for comments. (ALSO READ: Govt to approve ‘Committee on Allowances’ report; higher allowances likely from April 10)

In the past month, the Committee on Allowances, through sources, made it clear that Transport Allowance would not be hiked, as reported by Sen Times. The decision, if remains final, would adversely affect Central Government employees residing in rented accommodations in Metropolitan cities.

In what appears to be a silver lining for Central Government employees, Centre is expected to finally hike the allowances. The announcement of higher allowances is likely to be made after March 8, when assembly elections in 5 states conclude. Due to the imposition of Model Code of Conduct, Government was unable to make the announcement.

However, the Central Government employees remain skeptical about the reports making the rounds, as the Finance Ministry chose not to mention about 7th Pay Commission in the Union Budget. Another reason for their pessimism is due to the indications made by Government, ruling out the release of arrears on allowances. According to Shiv Gopal Mishra, the arrears on allowances remain unlikely. “Arrears are unlikely, but protests on non-release of arrears are most likely,” he said while speaking to India.com.