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63 per cent dearness allowance hike recommended by Pay panel

Posted January 29th, 2015, 11:25 AM IST

63 per cent dearness allowance hike recommended by Pay panel

Hyderabad: The 10th Pay Revision Commission’s recommendations are weighing heavily on the pockets of Telangana and Andhra Pradesh. The committee has recommended addition of 63.34 per cent DA (dearness allowance) to the basic pay existing on July 1, 2013, which comes to 29 per cent hike over basic pay.

The employees’ contention is that the cost of living has increased sharply since 2009 when the 9th PRC was implemented, which ended in July 2013, and a 29 per cent hike would not support it.

They say the cost of education, health, transport, government taxes and charges has increased manifold since 2009, which comes to around 69 per cent increase over the 9th PRC. “When compared with employees and professionals in the private sector, government employees are drawing lower salaries.

After serving for decades, they feel upset looking at the higher salaries of employees in the private sector though their seniority is less than half. There is a clear inequality between them and it is for this reason the demand for a higher hike is coming from government employees both at the Centre and state levels,” said Dr G. Vijay, department of Economics, University of Hyderabad.

Employees are strongly objecting the commission's recommendations. The committee has calculated that each employee family, comprising three members, would incur an expenditure of Rs 12,976 per month and had recommended Rs 13,000 as basic pay.

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