The Centre on Tuesday increased dearness allowance (DA) by six per cent for over five million employees and 3.8 million pensioners, in order to give them cushion against rising inflation.
“The decision to hike the DA was taken by the Union Cabinet at its meeting here,” a Cabinet minister said.
In the next financial year, the burden on the exchequer would be Rs 6,668.52 crore after taking into account arrear payout from January 1 to March 31 this year.
The increased DA will be effective from January 1. At present, the DA is paid at 45 per cent of the basic pay.
The Consumer Price Index (Industrial Workers), the basis for revising dearness allowance, stood at 9.3 per cent in January. The government on Tuesday cleared a Bill for mandatory hallmarking of gold and other products.
The Bureau of Indian Standards (Amendment) Bill, 2011, would extend the mandatory hallmarking from the current 77 products, including cement, mineral water and milk products.
