Central Govt Employees & Pensioners get 8% DA Hike
Central Government on Friday increased the Dearness Allowance for its employees and pensioners by 8 per cent. The government said this move will compensate them for the price rise witnessed in the past few months.
The hike of 8 per cent would be over and above the existing rate of 27 per cent DA of the basic pay or pension.
Information and Broadcasting Minister Ambika Soni told after the Cabinet Meeting that this hike is in accordance with a formula based on the recommendations of the 6th Pay Commission.
The additional installment of DA would be released with effect from January this year.
As per the government estimate the impact of this decision would cost the exchequer additional Rs. 6969.36 crores per year.
And for the year 2010-11 the combined impact of Dearness Allowance and Dearness Relief is estimated at Rs. 8131.20 crores.
The DA revision is based on the consumer price index (CPI) for industrial workers. The index has seen sharp increase in the past.
