Central Government employees do have a reason to be happy midst of all price hikes of diesel, LPG, etc. - you guessed it right - reason is that they will get some extra green themselves too.
Union Cabinet increased Dearness Allowance(DA) by 7% for the employees. There's news for ex-servicemen too - system One Rank - One Pension (OROP) will also be implemented.
DA is a part of salary which is calculated based on basic pay of an employee. Before this raise - DA was 65% of basic pay for all central government employees; now they will be getting extra 7% (=72%) of basic pay in their pocket. Moreover this change is implemented from 1st July itself - hence their will be retro-payout also. DA is somehow related to the consumer price index and further to retail price; hence government often increases DA due to increment in retail prices. Last change (+7%) in DA was done in March this year (increment was effective Jan 2012).
OROP, on the other hand - states that two person will get same pension if they retired on same rank after same YOS (year of service) irrespective of when they retired. Meaning if pension is enhanced in future, old pensioners would also get benefit from this. But, seems like the announced implementation is not entirely OROP and is just a delusion. IESM Vice-Chairman Maj Gen Satbir Singh wrote a letter to the Prime
Minister: "To illustrate, a sepoy, naik and havlidar have been given an increase of only
Rs 400 per month, whereas a sepoy who retired on January 2012 draws
approximately Rs 4,000 more than those who retired prior to 2006.".
In all, around 80 Lakh employees will be affected from these changes (50 Lakh current employees + 30 Lakh ex-servicemen). Reason to celebrate or protest this weekend ?
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