Central Govt employees to get 5 per cent more dearness allowance

The Government today announced a five per cent increase in the dearness allowance for the Central Government employees and pensioners, with effect from July this year, entailing an outgo of about Rs 2,904 crore this fiscal.

The central government on Thursday announced a five per cent hike in dearness allowance for its employees and pensioners, with retrospective effect from July 1.

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The decision was taken at a meeting of the union cabinet chaired by Prime Minister Manmohan Singh, Information and Broadcasting Minister Ambika Soni told reporters in New Delhi after the meeting.

Dearness allowance will now be 27.77 per cent of the basic pay of government officials and pensioners.

The hike will cost the government Rs 2,903.55 crore in 2009-10 and Rs 4, 355.35 crore per year in subsequent years, Soni said.