Union Cabinet today announced six percent hike in the Dearness Allowance (DA) for central government employees and pensioners with effect from 1st of January this year. With this hike, the DA now has gone up to 113 per cent of the basic pay from 107 per cent. A decision in this regard was taken at the Cabinet meeting chaired by Prime Minister Narendra Modi in New Delhi.
The increase is in accordance with the accepted formula based on the recommendations of the 6th Central Pay Commission. According to an official release, the decision will benefit 48 lakh government employees and 55 lakh pensioners in the country. The impact on the exchequer on account of increase will be of over 6762 crore rupees annually.
