Cabinet announces additional 5 per cent DA to central govt employees
The union cabinet on Thursday has decided to release an additional installment of dearness allowance to central government employees and dearness relief to pensioners. The enhancement of DA and DR would be effective from July 01, 2009. The government said this decision would compensate for the price rise. It represents an increase of 5% over the existing rate of 22% of the Basic Pay or Pension.
The government said that the increase is in accordance with the accepted formula, which is based on the recommendations of the 6th Central Pay Commission. This will put an extra burden of Rs. 2903.55 crore in this financial year (for a period of 8 months from July 2009 to February 2010). For a full financial year it would put an extra burden of Rs. 4355.05 crore on exchequer.
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