Dearness Allowance Raised by 6%

On last day of the Parliament just before the elections, the government has gift for its employees. The Cabinet has announced a six per cent hike in the Dearness Allowance for all its employees.

This increase will become effective from Jan 1 2009. (Update: From Jan 1, 2010 DA increased by 8%)There is also a possibility of a cut in fuel prices that could be announced later in the day.

So the UPA is clearly in the election mode now.

PTI adds:The decision to increase DA was taken because of the rise in the consumer price index for industrial workers.

DA is revised twice a year, from January one and July one, payable in salaries of March one and September one, respectively.

The additional financial implication on account of the increase in DA to Central government employees (excluding pensioners) would be Rs 4,100 crore for 14 months from January
one this year.

The rise in allowance, called dearness relief, to pensioners will cost the exchequer Rs 1,920 crore during the period.

However, for a full year, the implication would be Rs 3,514 crore because of revised DA for employees and Rs 1,645 crore for pensioners.

Central government employees and pensioners got hike in salaries from September after the Government approved the Sixth Pay Commisison’s report with some modifications. Source :NDTV.com

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