UNION CABINET APPROVED 7% DEARNESS ALLOWANCE HIKE FOR CENTRAL GOVERNMENT EMPLOYEES

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UNION CABINET APPROVED 7% DEARNESS ALLOWANCE HIKE FOR CENTRAL GOVERNMENT EMPLOYEES

CABINET COMMITTEE APPROVED 7% DEARNESS ALLOWANCE HIKE FOR CENTRAL GOVERNMENT EMPLOYEES AND PENSIONERS

The Union Cabinet today approved to increase Dearness Allowance by 7% to Central Government employees.

The rate of Dearness allowance shall be enhanced from the existing rate of 51% to 58%.

Revised rates effective from 1.7.2011.

Finance Ministry will publish detailed Office Memorandum regarding this issue within this month.

The amount of additional instalment of Dearness allowance and the arrears for two months will be paid in cash to all Central Government employees.

This will benefit more than 50 lakh serving employees and 38 lakh pensioners.

This hike was made on the basis of the calculation of All India Consumer Price Index (Industrial Workers) published by Labour Breau.

This DA hike will be impact in the Transport allowance also, according to the classes of cities (5400 GP and above = Rs.3200 + DA thereon, below 4200 GP = Rs.600 + DA thereon and above 4200 GP = Rs.1600 + DA thereon).

The highest rate of additional Derness allowance is 10%  from July 2010 and the least of these 2% from July 2006,  after 6th CPC.

The calculation of Dearness allowance is with the Pay in the pay band plus Grade Pay multiple with 58% is equal to Revised payment of DA from July, 2011.

The additional DA calculation is based on the previous 12 months of average on  AICPIN(IW) from Jul-2010 to June-2011.