CABINET APPROVES 7% INCREASE IN DEARNESS ALLOWANCE FROM JANUARY 2012…

CABINET APPROVES 7% INCREASE IN DEARNESS ALLOWANCE FROM JANUARY 2012…

All the Central Government  Employees would have breathed a sigh of relief  when the Govt finally approved the  7% hike in Dearness Allowance from January 2012 as all we expected. Giving relief to the central government employees and pensioners from inflation, the central government, in its cabinet committee meeting, approved  the  seven percentage point increase in dearness allowance (DA) which will cost the exchequer an additional Rs 7,500 crore.

The new DA rate of 65 per cent of basic pay against 58 per cent earlier will be applicable retrospectively from January 1, 2012. It will benefit about 50 lakh employees and 30 lakh pensioners.

The increase is in accordance with the accepted formula, which is based on the recommendations of the 6th Central Pay Commission. The combined impact on the exchequer on account of both dearness allowance and dearness relief would be of the order of Rs.7474.53 crore per annum and Rs.8720.32 crore in the financial year 2012-13 (i.e. for a period of 14 months from January, 2012 to February, 2013).

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4 thoughts on “CABINET APPROVES 7% INCREASE IN DEARNESS ALLOWANCE FROM JANUARY 2012…”

  1. Am a newly appointed one(labour ministry). Just two month back. Am i eligale for increase in this DA

  2. simanchal Bareik

    very very attractie DA but haick of market price DA should be separate of class I staffs & other staffs

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