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DA HIKE

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Union Cabinet today approved the proposal to increase dearness allowance (DA) to 80 per cent, from existing 72 per cent, benefiting about 50 lakh employees and 30 lakh pensioners of the central government.The hike would be effective from January 1, 2013 and the employees and pensioners will be entitled to arrears. Thus, the combined impact on the exchequer on account of both DA and DR would be of the order of Rs.8629.20 crore per annum and Rs. 10067.36 crore in the financial year 2013-14 (that is for a period of 14 months from January, 2013 to February, 2014).

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