PSU staff get 5% hike in dearness allowance
The PSU employees, pursuant to a notification issued by the government on Tuesday, will get industrial dearness allowance (IDA) at 84.4% of basic pay with effect from July 1. The government had earlier increased the IDA for officers and workers of the CPSEs to 79.4% of the basic pay, which came into effect on April 1.
The decision to raise IDA, according to a Standing Conference of Public Enterprises (SCOPE) official, will benefit everyone including board level executives, below board level officers, employees and workers of the central PSUs.
The IDA for the PSU staffs are revised every quarter depending upon the movement of the Consumer Price Index (CPI) with a view to compensate them for the rising cost of living.
The hike in IDA will provide some relief to the CPSE staff, reeling under the spate of rapidly rising wholesale price-based inflation, which is nearing a 13-year high mark of 12%. The next installment of the IDA will become due on October 1, 2008.
With regard to the other government employees, the Centre had referred the recommendations of the Sixth Pay Commission to a committee headed by Cabinet secretary KM Chandrasekhar following protest by the trade unions that proposed raise was insufficient and not acceptable to them.
Furthermore, the second pay revision committee set up