Cabinet okays release of additional DA for Central Govt. employees
The Union Cabinet today decided to release an additional instalment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners with effect from July 1.
An official press release said this represented an increase of 10 per cent over the existing rate of 35 per cent of the basic pay/pension and was meant to compensate for the price rise.
The increase is in accordance with the accepted formula, which is based on the recommendations of the 6th Central Pay Commission, it said.
The combined impact on the exchequer on account of both Dearness Allowance and Dearness Relief will be of the order of Rs. 9,303.2 crore per annum and Rs. 6,202.1 crore in the financial year 2010-2011 (for a period of 8 months from July,2010 to February, 2011), the release added.