The government nowadays approved a proposal to hike dearness permitting to 90 % from existing 80 %, a move that would benefit about 50 lakh central government employees as well as 30 lakh pensioners.
"The Union Cabinet approved the proposal to increase dearness allowance to 90 % at its getting together with here. The hike could be effective from Come early july 1, this yr, " a origin said.
According for the source, the increase inside DA to 90 % would result inside additional annual expenditure of Rs 10, 879 crore. There could be additional burden of Rs 6, 297 crore on exchequer during 2013-14 out of this hike inside DA.
This is often a double digit backpack in DA after several years. It seemed to be last in September, 2010, that the us government had announced a hike of 10 % to be offered with effect by July 1, 2010.
DA was hiked to 80 % from 72 % in April, 2013, effective from January 1, this coming year.
As per your practice, the government employs CPI-IW data regarding past 12 months to arrive at a number with regards to any DA backpack.
The retail inflation regarding industrial workers concerning July, 2012 and 06 2013 was accustomed to compute the boost in DA.