In a move that will benefit over one crore Central government employees and pensioners, the Union Cabinet on Tuesday hiked Dearness Allowance (DA) by 6 per cent to 113 per cent of their basic pay with effect from January.
The decision will benefit 48 lakh government employees and 55 lakh pensioners would involve an outlay of Rs 7,889.34 crore in the current fiscal.
“Central government employees as well as pensioners are entitled for DA/Dearness Relief (DR) at the rate of 113 per cent of the basic pay with effect from January 1, 2015,” a government release said.
The increase is in accordance with the accepted formula based on the recommendations of the 6th Central Pay Commission.