HindustanTimes Thu,18 Sep 2014

Government hikes dearness allowance by 8%

PTI  New Delhi, April 18, 2013
First Published: 21:07 IST(18/4/2013) | Last Updated: 21:09 IST(18/4/2013)

The Union Cabinet on Thursday approved the proposal to increase dearness allowance (DA) to 80%, from the existing 72%, benefiting about 50 lakh employees and 30 lakh pensioners of the central government.


The hike would be effective from  January 1, 2013 and the employees and pensioners will be entitled to arrears.

The decision to raise the DA will impose an additional annual burden of Rs. 8,629.20 crore on the exchequer, Information and Broadcasting Minister Manish Tewari told reporters after the meeting of the Union Cabinet.

Taking into account the additional outgo for the January-March period, the total burden during the current financial year would be Rs. 10,067 crore.

The government had hiked DA to 72% in September last year. It had come into effect from July 1, 2012.

As per the practice, the DA is merged with basic pay when it breaches the 50% cap. This helps employees get higher allowances as they are paid as proportion of the basic pay.

more from New Delhi

Badaun case: Eye-witness flunks lie-detector test

In a fresh twist, the main eyewitness in the case related to the alleged rape and murder of two minor girls in Badaun in May, Nazru, has allegedly flunked the polygraph test conducted on him by the Central Bureau of Investigation (CBI).

Most Popular
Copyright © 2014 HT Media Limited. All Rights Reserved