New Delhi: Government on Wednesday announced six per cent increase in dearness allowance for its employees and pensioners who number about 10 million.
The decision to hike dearness allowance was taken by the Union Cabinet, costing the exchequer additional Rs 11091.9 crore.
‘‘The increase is in accordance with the accepted formula, which is based on the recommendations of the 6th Central Pay Commission (CPC). The combined impact on the exchequer on account of both Dearness Allowance and Dearness Relief would be in the order of Rs 6655.14 crore per annum and Rs 4436.76 crore in the financial year 2015-16 (for a period of 8 months from July, 2015 to February, 2016)’’ according to an official statement.
Dearness allowance is adjusted with the rate of inflation. (UNI)
