By IANS,
New Delhi : To compensate its employees and pensioners for general price rise, the central government Monday decided to hike their dearness allowance (DA) by seven percent points, sources said. At present the dearness allowance is 65 percent of the basic pay.
The additional DA and dearness relief will be paid from July 1 and will cost the government Rs.4,938.78 crore in the current 2012-13 fiscal. The annual burden of the additional DA to the government would be Rs.7,408.24 crore, said officials.
The proposal was cleared by the union cabinet at its meeting presided over by Prime Minister Manmohan Singh.
The increase in DA is in accordance with the Sixth Pay Commission formula.
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