Union Cabinet Approves 10% DA/DR Increase for Central Government Employees and Pensioners from July 2013.

The Union Cabinet has approved an additional installment of Dearness Allowance (DA) for Central Government employees and Dearness Relief (DR) for pensioners, effective from July 1, 2013. This increase raises the DA/DR rate by 10 percent, from 80 percent to 90 percent of the basic pay. The adjustment follows the 6th Central Pay Commission's recommendations. The financial impact on the exchequer is estimated at Rs. 10,879.60 crore annually and Rs. 7,253.10 crore for the financial year 2013-14, covering the period from July 2013 to February 2014.