The Union Cabinet cleared 6 per cent raise in the dearness allowance (DA) for central government employees, benefiting 48 lakh government employees and 55 lakh pensioners. With this hike, the DA now goes up to to 113 per cent of the basic pay from 107 per cent.
“The Union Cabinet chaired by the Prime Minister Narendra Modi today gave its approval for the release of an additional installment of dearness allowance to central government employees and dearness relief (DR) to pensioners with effect from January 1, 2015. This is an increase of 6 per cent over the existing rate of 107 per cent of the basic pay/pension, to compensate for price rise,” a government statement said.
The Centre said that this increase is in accordance with the accepted formula, which is based on the recommendations of the 6th Central Pay Commission.