DA for Central Govt Employees, Pensioners Increased by 8%

The dearness allowance for central government employees and pensioners has been hiked up by eight percentage point to compensate for price rise, reported PTI.

Talking to reporters after Union Cabinet meeting, Information and Broadcasting Minister Ambika Soni said that the hike was in accordance with the accepted formula based on the recommendations of the Sixth Central Pay commission, said report.

According to the decision, the allowance will be increased by eight per cent over the existing rate of 27 per cent of basic pay or pension, report said.

Report said that release of the additional installment of dearness allowance would be effective from January this year.

The dearness allowance and the dearness relief would put a combined burden to the tune of Rs 6969.36 crore per annum and Rs 8131.20 crore on the exchequer in the financial year 2010-2011.

The DA revision is based on the consumer price index (CPI) for industrial workers, which has been showing a steep increase along with other indices of price rise.

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