The Central Government employees, both serving and retired have cause for cheer as the government has announced additional dearness allowance (DA) and dearness relief (DR) of 10 % effective July 1. This will benefit around 50 lakh serving employees and 30 lakh retired employees.
The latest hike raises the effective rate of DA and DR to 90 % and would need additional outgo of of Rs 7, 253 crore in 2013-14 and Rs 10,879 crore 2014-15 onwards. These revisions are based on the consumer price index changes. This double digit hike in DA comes after three years.