10% DA hike for Central government employees Friday Sep 20,2013

The Union Cabinet on Friday Sep 20,2013 approved a double-digit increase in dearness allowance to 90 per cent, benefiting 50 lakh Central government employees and 30 lakh pensioners, with effect from July 1, 2013.
 “The Cabinet approved the proposal to release an additional instalment of DA to Central government employees and Dearness Relief (DR) to pensioners, in cash, at 10% over the existing rate of 80 %” Information and Broadcasting Minister Manish Tewari told

An official statement said they were entitled to the hike in DA/DR at the rate of 90 per cent of the basic pay. The increase “is in accordance with the accepted formula based on the recommendations of the 6th Central Pay Commission.” 

The impact on the exchequer would be about Rs. 10,879.60 crore per annum on account of DA and Rs. 7,253.10 crore on account of DR in the financial year 2013-14 (eight months from July 2013 to February 2014)

Note

In April 2013 the government announced DA increase from 72 to 80 % with effect from January 1, 2013