Thursday 18 April 2013

Government hikes dearness allowance by 8 percent


New Delhi: The government the dearness allowance (DA) for central government employees by 8 percent on Thursday, which will impose an additional charge of Rs.8,629 crore on the exchequer annually.
The Cabinet Committee on Economic Affairs (CCEA) in its meeting here decided to hike the inflation-linked incentive by eight percent effective Jan 1, 2013.
“Cabinet today (Thursday) gave its approval to release an additional installment of dearness allowance (DA) to central government employees and dearness relief (DR) to pensioners with effect from Jan 1, 2013 at the rate of eight percent over the existing rate of 72 percent,” an official statement said.
The decision is expected to benefit around 50 lakh central employees and 30 lakh pensioners. The increase in DA and DR will cost the exchequer Rs.8,629.20 crore per annum and Rs.10,067.36 crore from January 2013 to February 2014.
The government had increased the DA from 65 percent to 72 percent last September for the remaining part of the last financial year. The measure cost the exchequer Rs.4,939 crore.

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