Central Employees, Pensioners to Receive 5% Hike in DA from July

Starting this July, central government employees and pensioners will receive a hike of 5 percent in the dearness allowance, announced the government on Thursday. It will put an additional burden of about Rs 2, 904 crore this fiscal.

Informing reporters of this decision taken by the union cabinet, information and broadcasting minister Ambika Soni said that the combined impact on the exchequer on account of hike in dearness allowance and relief would be of the order of Rs 4,355.35 crore for a full year.

The impact for the current fiscal would be Rs 2903.55 crore, as the increase would be effective for nine months only from July to March.

The five per cent increase in the DA for the employees and dearness relief for pensioners would be over the existing rate of 22 per cent of the basic pay or pension, the minister said.
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