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HindustanTimes Thu,31 Jul 2014

Govt okays 10% hike in DA with effect from July 1

PTI  New Delhi, September 21, 2013
First Published: 19:42 IST(21/9/2013) | Last Updated: 19:49 IST(21/9/2013)

The government on Friday approved a proposal to hike dearness allowance (DA) to 90% from the existing 80%, a move that is expected to benefit at least 50 lakh central government employees and 30 lakh pensioners.

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The hike will be effective from July 1 this year, a source said, adding the increase in DA to 90% would result in an additional annual expenditure of Rs. 10,879 crore.

There would be an additional burden of Rs. 6,297 crore on the exchequer during 2013-14.

This is a double digit hike in DA after about three years. It was in September 2010 that the government had announced a hike of 10% to be given with effect from July 1, 2010.

The DA was hiked to 80% from 72% 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 and June 2013 was used to compute the increase in the DA.


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