New Delhi, February 1: The Union Budget 2020-21 fails to meet the expectations of central government employees, with no announcement made by Finance Minister Nirmala Sitharaman on dearness allowance (DA) or the minimum wages. The employee unions were hopeful of an increase in DA, as well as dearness relief (DR) for pensioners, in view of the rising inflation. A section of the workforce was also rooting for a marginal hike in entry-level and base salaries. Nirmala Sitharaman Relieves Salaried Class With Income Tax Rate Cuts, Announces LIC Stake Sale: Highlights

With no changes made in the DA, the key allowance would remain the same as 17 percent. The minimum salaries, as per the 7th Pay Commission, would continue as Rs 18,000. The Finance Ministry had earlier told the Parliament that there is no proposal on cards to hike the salaries beyond the 7th pay panel report.

Reports had last month speculated that the DA for employees would be raised by four percent, from 17 to 21 percent. The minimum wages were being rumoured to be raised to Rs 21,000. While the increment in entry-level wages is being demanded since July 2016 -- ever since the 7th Pay Commission report was implemented, the demand to raise DA gained impetus after the consecutive hike in inflation over the past two quarters. The vegetable inflation, in December 2019, jumped to 60.5 percent.

Even as the Centre has refrained from extending a DA hike for central government employees, the state governments in Odisha, Gujarat and Himachal Pradesh had announced an increase in the allowance for their respective state employees last month. The Congress-led Madhya Pradesh government is expected to take cue and announce a similar increment in the next few days.

(The above story first appeared on LatestLY on Feb 01, 2020 04:54 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).