Delhi: DA Hike to 6% decision was taken at the meeting of Union Cabinet headed by Prime Minister Narendra Modi by which around 1 crore government employees and pensioners will be benefited.
A six percentage hike in Dearness Allowance (DA) to over one crore central government employees and pensioners it to be made possible. On Tuesday, the Union Cabinet chaired Prime Minister Narendra Modi announced hike details in DA i.e. by 6 percentage points to 113% of their basic pay that will be in active from January. With this hike, now DA increases from 107 percentage of basic pay to 113%.
Previously DA was reviewed in last year September. It was increased from 100% of basic pay to 107% effective from 1st July 2014. Now the hike is from 107% to 113%, which is effected from 1st January 2015. The hike in DA is accepted based on the recommendations of the 6th Central Pay Commission.
Over 48 lakh government employees and 55 lakh pensioners would be benefited with this decision. The decision would lead to an outgo of Rs. 7,889.34 crore in the current fiscal year. In the union cabinet meeting, Prime Minister Narendra Modi, decided to hike the dearness allowance. He said, “Central Government employees as well as pensioners are entitled for DA/Dearness Relief (DR) at the rate of 113 percent of the basic pay with effect from January 1, 2015”.
Because of hike in Dearness allowance, exchequer will be on impact with an account of both DA and DR of Rs. 6,762.24 core per annum and Rs. 7,889.34 core in the 2015-16 for a period of 14 months from January 2015 to February 2016.