New Delhi: Government today approved 6 percent hike in dearness allowance (DA), taking it to 113 per cent of basic pay, a move that will benefit around 30 lakh central employees and 50 lakh pensioners including dependents.
The Union Cabinet chaired by Prime Minister Narendra Modi, today gave its approval for the release of an additional instalment of DA to general government employees and Dearness Relief (DR) to pensioners with effect from Jan 1, 2015. This is an increase of 6% over the existing rate of 107 percent of the Basic Pay/Pension, to compensate for price rise," a press statement said here.
The increase is in accordance with the accepted formula, which is based on the recommendations of the 6th Central Pay Commission, it said.
As per the practice, the dearness allowance is worked out on the basis of 12 month average of Consumer Price Index for Industrial Workers (CPI-IW).
Therefore, the central government decided to hike dearness allowance for it employees by 6 per cent.
SOURCE - NDTV