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Friday, March 23, 2012

Govt raises DA by 7 percentage points

Giving relief to its employees and pensioners from inflation, the central government on 23.03.2012 (Friday) announced a seven percentage point increase in dearness allowance (DA).

The new DA rate of 65 per cent of basic pay against 58 per cent earlier will be applicable retrospectively from January 1, 2012.

The decision, was taken by the Union Cabinet. It will benefit about 50 lakh employees and 30 lakh pensioners.

The government periodically hikes the DA, which is linked to consumer price index for industrial workers. The CPI is hovering around 7 per cent.

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