PUBLISHED BY: SURENDER KUMAR
MARCH 23, 2016
On the eve of Holi, the government has hiked the dearness allowance (DA) by 6 per cent, benefiting over 1 crore central government employees and pensioners. The hike, which will cost the exchequer an additional Rs 14,724.74 crore annually, will take effect from January, 2016. The additional burden on the exchequer would be Rs 6,795.5 core towards central government employees and Rs 7,929.24 crore towards pensioners during 2016-17.
The DA, which will benefit 50 lakh central government employees and 58 lakh pensioners, will go up from the existing 119 per cent to 125 per cent. Dearness allowance is paid as a portion of the basic pay to neutralize the impact of inflation. Pensioners also get dearness relief in equal measure. The central government revises DA twice in a year on the basis of one year average of retail inflation for industrial workers as per a pre-determined formula.