Govt hikes dearness allowance by 10 per cent

New Delhi, Sep 20 (ANI): The Union Cabinet today approved a proposal to release an additional installment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners to 90 per cent from existing 80 per cent.

Information and Broadcasting Minister Manish Tewari said, the hike will be effective from July this year. He said, the decision will benefit about 50 lakh Central government employees and 30 lakh pensioners.

Hence, the Central Government employees as well as the pensioners are entitled for DA/DR at the rate of 90 per cent of the basic with effect from 01.07.2013.

The increase is in accordance with the accepted formula based on the recommendations of the 6th Central Pay Commission.

The combined impact on the exchequer on account of both dearness allowance and dearness relief would be of the order of Rs. 10879.60 crore per annum and Rs. 7253.10 crore in the financial year 2013-14 ( i.e. for a period of 8 month from July, 2013 to February 2014). (ANI)

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