Govt hikes dearness allowance to 90%: Zee News
New Delhi: The Union Cabinet on Friday approved a proposal to hike dearness allowance to 90 percent from existing 80 percent, a move that would benefit about 50 lakh central employees and 30 lakh pensioners.
The hike would be effective from July 1, this year.
The increase in DA to 90 percent would result in additional annual expenditure of Rs 10,879 crore. There would be additional burden of Rs 6,297 crore on exchequer during 2013-14 on account of this hike in DA.
It was last in September, 2010, that the government had announced a hike of 10 per cent to be given with effect from July 1, 2010.
DA was hiked to 80 percent from 72 percent in April, 2013, effective from January 1, this year.
As per the practice, the government uses CPI-IW data for past 12 months to arrive at a number for the purpose of any DA hike.
The retail inflation for industrial workers between July, 2012 to June 2013 was used to compute the increase in DA.
With PTI Inputs
Source: Zee News
[http://zeenews.india.com/business/news/economy/govt-hikes-dearness-allowance-to-90_84938.html]
Formal Press Release by Govt. through Press Information Bureau:-
Cabinet
20-September, 2013
Release of additional installment of dearness allowance to Central Government employees and dearness relief to Pensioners, due from 1.7.2013
The Union Cabinet today approved the proposal to release an additional installment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners with effect from 01.07.2013, in cash, at the rate of 10 per cent increase over the existing rate of 80 per cent.
Hence, the Central Government employees as well as the pensioners are entitled for DA/DR at the rate of 90 per cent of the basic with effect from 01.07.2013. The increase is in accordance with the accepted formula 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 of the order of Rs. 10879.60 crore per annum and Rs. 7253.10 crore in the financial year 2013-14 ( i.e. for a period of 8 month from July, 2013 to February 2014).
***
PIB
(Release ID :99505)
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long awaited ,great decision