The government on Wednesday announced that dearness allowance for govt employees has been hiked to 6 per cent.
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The hike will benefit about 48.41 lakh central government employees and 62.03 lakh pensioners.
The National Pension System is applicable for government employees joining the service after April 1, 2004. It was based on the premise of contribution rather than defined benefit applicable for employees prior to the NPS.
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The Union Cabinet on Friday increased the dearness allowance and dearness relief by 4 per cent to 42 per cent to benefit 47.58 lakh central government employees and 69.76 lakh pensioners. The combined impact on the exchequer on account of both Dearness Allowance and Dearness Relief will be Rs 12,815.60 crore per annum, I&B Minister Anurag Thakur told reporters after the meeting of Cabinet Committee on Economic Affairs (CCEA).
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The hike would be effective from January 1, 2013 and the employees and pensioners will be entitled to arrears.
England were in command on 30/1 at tea after bowling West Indies out for 121 on the opening day of the first Test.
The Union Cabinet has approved eight per cent hike in dearness allowance (DA) for central government employees with effect from January 1.
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The Union Cabinet on Friday cleared the proposal to hike dearness allowance for central government employees following the rise in inflation.
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Central government employees and pensioners will get an additional 6 per cent dearness allowance from next month, putting a burden of over Rs 6,000 crore (Rs 60 billion) on the exchequer.
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After careful consideration, the finance ministry appears to have rejected the proposal of merging 50 per cent of dearness allowance with basic salary of government employees and setting up of the Sixth Pay Commission.
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The decision of the Cabinet to increase DA for employees and pensioners from 27 per cent to 35 per cent will cost the exchequer Rs 6,969.36 crore (Rs 69.693 billion) per annum and Rs 8,131.20 crore (Rs 81.312 billion) during 2010-2011.
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