New Delhi. The Union government on Monday hiked Dearness Allowance (DA) by 7%, benefiting its 80 lakh employees and pensioners and costing the exchequer an additional Rs7,408 crore annually.
The hike will be effective from July 1, 2012, and the employees would be entitled for arrears from this date.
The hike in the DA from 65% to 72% will cost the exchequer Rs4,939 crore for the remaining part of the current financial year. The annual burden on account of the DA increase has been estimated at Rs7,408 crore, says an official release.
The decision, which was approved by the Union cabinet, will benefit about 50 lakh employees and 30 lakh pensioners of the central government.