Centre increases the DA, DR of employees and pensioners

New Delhi, Aug 30 (UNI) The Centre tonight announced a six per cent increase in the Dearness Allowance(DA) of its employees and the Dearness relief (DR) of its pensioners with retrospective effect from July 1 this year, together costing an additional financial commitment of Rs 3284.94 crore a year.

The decision to increase the DA and DR, which will be now 41 per cent, was taken at a meeting of the Union Cabinet, chaired by Prime Minister Manmohan Singh.

Information and Broadcasting Minister Priya Ranjan Dasmunsi told mediapersons that the 12-monthly average of the All India Consumer Price Index for the period ending June 2007, worked out to 587.62 which constituted an increase of 91.82 per cent over the base index of 306.33 per cent. Fifty per cent of DA had been merged with basic pay with effect from April 1, 2004.

The rate of DA from July 1, 2007 would be 41 per cent for all Central government employees, constituting an increase of six per cent over the existing 35 per cent, he said.

The rate of dearness relief from July 1, 2007, will accordingly be 41 per cent for all pensioners and family pensioners of the Central government.

Mr Dasmunsi said the additional financial implications on account of increase in the DA would be Rs 2206.86 crore per annum and Rs 1471.24 crore in the financial year 2007-08.

The additional financial implications on account of the increase of Dearness Relief to pensions would be Rs 1078.08 crore per annum and Rs 718.72 crore during 2007-08.

He said the combined impact on exchequer on account of both dearness allowance and dearness relief would be Rs 3284.94 crore in a full year and Rs 2189.96 crore during 2007-08.

UNI