New Delhi: The government on Thursday unveiled a festival bonanza for the Central Government employees in the form of a five per cent hike in the Dearness Allowance with effect from July 1. The increase will be applicable also to pensioners, who get dearness relief.
The decision, benefiting about six million employees and pensioners was taken at a Union Cabinet meeting chaired by Prime Minister Manmohan Singh, a Cabinet spokesperson said. With the increase, the DA goes up from the present 24 per cent to 29 per cent.
The burden on the exchequer due to the DA increase will be Rs 1,888.8 crore per annum and Rs 1,259.25 crore in the financial
year 2006-07. In case of pensioners, the additional burden will be Rs 898.35 crore per annum and Rs 598.9 crore in 2006-07.
The total financial implication on the government on account of the increase in DA and dearness relief for pensioners will be Rs 2,787.15 crore per annum and Rs 1,858.15 crore in 2006-07.
DA to Central Government employees is revised twice a year in January and July and paid with the salary for the months of March and September on the basis of the Fifth Pay Commission recommendations.
(With agency reports)
Comments
0 comment