Friday, March 19, 2010

8% Dearness Allowance for Central staff declared.

As predicted well in advance in this blog, the Union cabinet has cleared the much awaited dearness allowance for central staff.

View the D.A. Order issued on 26.03.2010

"The Union Cabinet today decided to release an additional instalment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners with effect from 1.1.2010 representing an increase of 8% over the existing rate of 27% of the Basic Pay/Pension, to compensate for price rise. The increase is in accordance with the accepted formula, which is based on the recommendations of the Sixth Central Pay Commission. The combined impact on the exchequer on account of both dearness allowance and dearness relief would be of the order of Rs.6969.36 crore per annum and Rs.8131.20 crore in the financial year 2010-2011 (for a period of 14 months from January, 2010 to February, 2011)."

View the original PIB Press Release.

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