10 Percent DA hike from July 2013 likely to be announced tomorrow

According to the sources from Finance Ministry, the Cabinet Committee may consider raising DA for Central Government employees and pensioners by 10 per cent on Friday.

The print and Electronic Media reports published for the past two days on ‘dearness allowance from July 2013 for central government employees,’ are also claiming that announcement on DA hike will be expected on Friday.

The Dearness Allowance will be increased to 90% with effect from 1st July 2013 for 50 Lakh existing Central Government employees. And the dearness relief  will also be increased to that extent for 30 lakh Central Government Pensioners with effect from 1st July 2013

According to a source, this hike would result in additional annual expenditure of Rs 10,879 crore. There would be an additional burden of Rs 6,297 crore on the exchequer during 2013-14 on account of this hike.

If this 10 % hike in dearness allowance approved by central Government, it would be a double digit hike in DA after about three years. In September 2010, the Government had announced a hike of 10 per cent with effect from July 1, 2010.