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

  • PTI, New Delhi
  • |
  • Updated: Sep 21, 2013 19:49 IST

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.

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.


also read

Delhi’s top cop, DCW chief see eye-to-eye on women’s safety

blog comments powered by Disqus