Central govt employees to get 7% DA hike

The Centre on Friday approved a 7% hike in dearness allowance to central government employees, a move that will provide some relief to about 8 million employees and pensioners stung by rising prices of goods and costly services. HT reports.

The Centre on Friday approved a 7% hike in dearness allowance to central government employees, a move that will provide some relief to about 8 million employees and pensioners stung by rising prices of goods and costly services.

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The new DA rate of 65% of basic pay against 58% earlier will be applicable retrospectively from January 1, 2012.

The decision, approved by Prime Minister Manmohan Singh, will benefit about 50 lakh employees and 30 lakh pensioners. It will cost the exchequer an additional Rs 7,500 crore.