Government hike 10% DA to Employees

Central Government staff and retired employees are to receive higher Dearness Allowance (DA) and Dearness Relief (DR). This follows the Union Cabinet on Thursday giving its nod to the hike in DA from 35 per cent to 45 per cent of the basic salary. The Cabinet approval will effectively increase the current DA and DR rates to 45 per cent of the basic pay/pension. The increase would be with retrospective effect from July 1 this year and has been done to compensate for the increased cost of living.
Starting next fiscal, the financial impact to the exchequer will be to the tune of Rs 9,303.2 crore annually. However, for the eight months of 2010-11 (from July, 2010 to February, 2011), the impact would be lower at Rs 6,202.1 crore. “The increase in DA and DR is in accordance with the accepted formula, which is based on the recommendations of the 6th Central Pay Commission,” an official statement issued here stated. With the festival season of Dussera and Diwali around the corner, this move is expected to benefit 50 lakh Central Government employees, besides 38 lakh pensioners.