The Central government on Tuesday hiked the dearness allowance (DA) for its staff by six percentage points to 51 per cent. This will benefit more than 50 lakh serving employees and 38 lakh pensioners.
The decision, taken by the Cabinet at a meeting here, should come as a welcome relief to Central government employees in the wake of a runaway increase in the prices of food items and other goods.
ICC Cricket World Cup 2011 Points Table
The decision, taken by the Cabinet at a meeting here, should come as a welcome relief to Central government employees in the wake of a runaway increase in the prices of food items and other goods.
ICC Cricket World Cup 2011 Points Table
The increase is to be effective from January 1, 2011, and in accordance with the formula prescribed by the Sixth Pay Commission, under which the allowance for government employees is revised twice in every calendar year, on January 1 and July 1.
The combined benefit of the hike is expected to be Rs. 5,715.90 crore a year. However, in the next financial year, the burden on the exchequer would be Rs. 6,668.52 crore after the additional 6 per cent DA payout, from January 1 to March 31 this year, is factored in.
The combined benefit of the hike is expected to be Rs. 5,715.90 crore a year. However, in the next financial year, the burden on the exchequer would be Rs. 6,668.52 crore after the additional 6 per cent DA payout, from January 1 to March 31 this year, is factored in.
The hike was made on the basis of the movement of the Consumer Price Index (Industrial Workers), which was 9.47 per cent in December last and stands pegged at 9.30 per cent as of this January.
