Govt increases central DA by five per cent

New Delhi, Sep 7 (UNI) The government today increased the Dearness Allowance of Central government employees by five per cent with effect from July 1.

The increase will also be applicable to pensioners, who get dearness relief.

The decision, benefitting about six million employees and pensioners was taken at a Union Cabinet meeting chaired by Prime Minister Manmohan Singh, a cabinet spokesperson said.

With the increase, the DA goes up from the present 24 per cent to 29 per cent.

The burden on the exchequer due to the DA increase will be Rs 1,888.8 crore per annum and Rs 1,259.25 crore in the financial year 2006-07.

In case of pensioners, the additional burden will be Rs 898.35 crore per annum and Rs 598.9 crore in 2006-07.

The total financial implication on the government on account of the increase in DA and dearness relief for pensioners will be Rs 2,787.15 crore per annum and Rs 1,858.15 crore in 2006-07.

DA to central government employees is revised twice a year in January and July and paid with the salary for the months of March and September on the basis of the Fifth Pay Commission recommendations.

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