Govt hikes dearness allowance for employees, pensioners by 5%
New Delhi, Sep 10 (PTI) The government today announced a five per cent increase in the dearness allowance for the central government employees and pensioners, with retrospective effect from July this year, entailing an outgo of about Rs 2,904 crore this fiscal.
Announcing the decision taken by the union cabinet, information and broadcasting minister Ambika Soni told reporters that the combined impact on the exchequer on account of the hike in dearness allowance and relief would be of the order of Rs 4,355.35 crore for a full year.
The five per cent increase in the DA for the employees and dearness relief for pensioners would be over the existing rate of 22 per cent of the basic pay or pension, the minister said. reports PTI
In India, Dearness allowance (D.A.) is part of a person's salary. D.A. is calculated as a percent of the basic salary. This amount is then added to the basic salary along with house rent allowance to get the total salary. Rates vary as per rural/urban areas etc. ( G.O. 788 Fin 13.05.1986, 134179 / 91-1 Fin 27.12.1991, 140549/92-4 Fin 02.07.1993 )
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