10% DA hike for Central government employees w.e.f 01 July 2013
Union Cabinet on 20 September 2013 (Friday) approved a double-digit increase of 10% in dearness allowance from existing 80% to 90 per cent, benefiting 50 lakh Central government employees and 30 lakh pensioners, with effect from July 1, 2013.
Significantly, the double-digit increase in DA has come after a gap of about three years. Since the government uses CPI-IW (Consumer Price Inflation – Industrial Workers) data for the previous 12 months to arrive at a figure for computation of any increase in DA instalment, the percentage hike is based on the retail inflation data for July 2012-June 2013. The previous DA hike of 10 per cent was in September 2010 when the government announced an additional instalment given with effect from July 1 that year.
In April this year, the government announced DA increase from 72 to 80 per cent with effect from January 1, 2013.
Official Release on PIB read as follows:
Release of additional installment of dearness allowance to Central Government employees and dearness relief to Pensioners, due from 1.7.2013
The Union Cabinet today approved the proposal to release an additional installment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners with effect from 01.07.2013, in cash, at the rate of 10 per cent increase over the existing rate of 80 per cent.
Hence, the Central Government employees as well as the pensioners are entitled for DA/DR at the rate of 90 per cent of the basic with effect from 01.07.2013. The increase is in accordance with the accepted formula based on the recommendations of the 6th Central Pay Commission.
The combined impact on the exchequer on account of both dearness allowance and dearness relief would be of the order of Rs. 10879.60 crore per annum and Rs. 7253.10 crore in the financial year 2013-14 ( i.e. for a period of 8 month from July, 2013 to February 2014).
Official order from finmin is expected soon and the same will be posted in this blog immediately on release by finmin. Keep Visiting!!!