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Dearness Allowance hiked by 6 per cent

NEW DELHI: The Union Cabinet on Friday approved the release of an additional instalment of Dearness Allowance to the Central government employees and Dearness Relief to pensioners, at the rate of 6 per cent with effect from January 1. With this, the rate of DA and Dearness Relief will increase to 47 per cent. The extra amount will be paid in cash.

Announcing this, Union Minister and Cabinet spokesperson, Priyaranjan Dasmunsi said the combined impact on the exchequer on account of both DA and Dearness Relief would be of the order of Rs. 3,297.12 crore in a full year and Rs. 3,846.66 in the financial year 2008-09 (for 14 months from January this year to Feburary next).

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