Government on Thursday raised the dearness allowance (DA) for central government employees and pensioners to 22% from 16%. DA, given as a percentage of pay, is meant to neutralise the impact of price rises. As per the recommendation of the 6th Pay Commission, the DA should be sanctioned twice a year on January 1 and July 1, payable with the March and September salaries.
“The hike will be effective from January 1 and will be payable from March 1, 2009,“ home minister P Chidambaram told reporters after a Cabinet committee meeting chaired by external affairs minister Pranab Mukherjee. with elections to be announced soon, sanctioning the DA sometime in March for it to be credited with that month’s salary could have gone against the election code. The DA largesse not only avoids that, but also brightens the ruling formation’s poll prospects. The decision will benefit half a crore employees and 38 lakh pensioners, Mr Chidambaram said. It will put Rs 6,020 crore in the hands of government staff and pensioners over the next 14 months, spurring consumer spend in a slowing economy.
“The hike will be effective from January 1 and will be payable from March 1, 2009,“ home minister P Chidambaram told reporters after a Cabinet committee meeting chaired by external affairs minister Pranab Mukherjee. with elections to be announced soon, sanctioning the DA sometime in March for it to be credited with that month’s salary could have gone against the election code. The DA largesse not only avoids that, but also brightens the ruling formation’s poll prospects. The decision will benefit half a crore employees and 38 lakh pensioners, Mr Chidambaram said. It will put Rs 6,020 crore in the hands of government staff and pensioners over the next 14 months, spurring consumer spend in a slowing economy.
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