6% DA To Govt Employees and Pensioners

As many as 48 lakh government employees and 55 lakh pensioners would draw additional dearness allowance of six per cent of their basic pay with effect from January one this year following a Cabinet decision to this effect on Tuesday. This will hit the exchequer by Rs 7889.34 from January to the end of this financial year and Rs 6,762.24 in a financial year.

This DA will be over the existing rate of 107 per cent of the basic pay.

As such, these employees are entitled for DA at the rate of 113 per cent of the basic pay with effect from 01.01.2015.

The increase is in accordance with the accepted formula, based on the increase in the consumer price index for industrial workers.