The Union Cabinet today gave its approval to release an additional instalment of Dearness Allowance (DA) to central government employees and Dearness Relief (DR) to pensioners with effect from 01.01.2013 at the rate of 8 percent over the existing rate of 72 percent.

Thus, the combined impact on the exchequer on account of both DA and DR would be of the order of Rs.8629.20 crore per annum and Rs. 10067.36 crore in the financial year 2013-14 (that is for a period of 14 months from January, 2013 to February, 2014).

SC/NK/SH/SKS

(Release ID :94794)

Dearness Allowance increase: additional instalment effective January increases rates and raises fiscal burden for central employees and pensioners. Approval to grant an additional instalment of Dearness Allowance to central government employees and Dearness Relief to pensioners effective 1.1.2013 by increasing the existing DA/DR rate by 8 percent over the prevailing 72 percent, with a noted annual and 2013-14 budgetary impact on the exchequer.