Dearness Allowance hiked by 6%

News

• In a bonanza to over one crore central government employees and pensioners, the Cabinet today hiked Dearness Allowance (DA) by 6 per cent to 113 per cent of their basic pay with effect from January.
• The increase is in accordance with the accepted formula based on the recommendations of the 6th Central Pay Commission.
• It would lead to an outgo of Rs 7,889.34 crore in the current fiscal.
• DA was last revise in September last year from 100 per cent of basic pay to 107 per cent. The increase was effective from July 1, 2014.

Benefit

• The decision is benefiting 48 lakh government employees and 55 lakh pensioners.