The Union Cabinet of India on 18 April 2013 cleared the proposal to increase Dearness Allowance (DA) for the Central government employees from 72 percent to 80 percent. The hike in the DA was made effective 1 January 2013 and will benefit about 50 lakh central Government employees and more than 30 lakh pensioners.
the impact of this decision on the exchequer on account of an additional installment of DA to the employees of Central Government and Dearness Relief to the pensioners would cost nearly 8629.20 crore rupees per annum with effect from 1 January 2013. During the financial year 2013-14 the same will account to 10067.36 crore rupees it includes the period of 14 months from January 2013 to February 2014.
Earlier the DA was increased to 72 percent by the Cabinet Committee in September 2012 which was brought into effect from 1 July 2012.