Central Government employees to get six percent dearness allowance hike

March 22nd, 2011 - 1:10 pm ICT by ANI  

New Delhi, Mar. 22 (ANI): The Union Cabinet is set to approve a six percent increase in dearness allowance for nearly 50 lakh central government employees and 38 lakh pensioners during its meeting here on Tuesday.

If approved, the dearness allowance, which is linked to the consumer price index, will rise from 45 percent to 51 percent, triggering a further change in the allowance structure. For instance, payments like conveyance allowance and children’s education allowance will also increase by 25 percent.

The special compensatory allowance which is given to employees posted in remote areas will also go up by 25 percent. The increase will cost the exchequer Rs 1,500 crore annually.

Sources said the additional installment of DA will be released with effect from January this year. Typically, the increase takes place in two installments effective January 1 and July 1. (ANI)

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