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Rediff News  All News  » Business » DA of central staff hiked by 7%

DA of central staff hiked by 7%

September 24, 2012 20:22 IST

The Union Cabinet on Monday agreed to release additional installment of Dearness Allowance (DA) to central government employees and Dearness Relief (DR) to pensioners with effect from 01.07.2012, representing an increase of 7 per cent over the existing rate of 65 per cent of the basic pay/pension, to compensate for price rise.

The increase is in accordance with the accepted formula, which is 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 to the order of Rs 7408.24 crore (Rs 74.08 billion) per annum and Rs 4938.78 crore (Rs 49.39 billion) in the financial year 2012-2013 i.e. for a period of 8 months from July, 2012 to February, 2013.