Govt staff to get 5 pc extra in dearness allowance

New Delhi, Sep 8: The government on Thursday, Sep 10, announced 5 pc increase in the dearness allowance for its employees and pensioners with effect from Jul 1, 2008.

The decision was taken at a meeting of the union cabinet chaired by Prime Minister Manmohan Singh, I& B Minister Ambika Soni told reporters here after the meeting.

Dearness allowance will now be 27.77 percent of the basic pay of government officials and pensioners.

"The hike will cost the government Rs 2,903.55 crore in 2009-10 and Rs 4,355.35 crore per year in subsequent years," Soni said.