Union Government on 4 September 2014 approved 7 percent hike in Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners. The notification of DA and DR will be effective from 1 July 2014.
This hike is an increase over the existing rate of 100 percent of the Basic Pay or Pension to compensate for price rise. This means that the DA has reached to 107 percent of the Basic Pay and the hike would benefit more than 30 lakh central employees and about 50 lakh pensioners.
In the current financial year period of July 2014 till February 2015, the decision will cost to the public exchequer around 12818 crore rupees. DA will be of approximately 7691 crore rupees per annum and that of the DR would be 5127 crore rupees.
The decision of hiking the Dearness Allowance was taken at the Cabinet meeting that was chaired by Prime Minister Narendra Modi in New Delhi. The announced increase is in accordance to the accepted formulae based on recommendations of the 6th Central Pay Commission.
Other decisions taken during the Cabinet Meet
• Nod for the Memorandum of Understanding (MoU) for co-operation in the field of traditional systems of medicine and homoeopathy between India and Bangladesh – the nod will not have any additional financial implications, as the financial resources to conduct research, training courses, conferences and meetings will be met from the existing allocated budget and existing plan schemes of the Department of AYUSH
• Nod was given to a proposal for constituting a four member Ministerial panel to give recommendations for setting up a green regulator in the Environment and Forest Ministry - the proposed regulator will grant green clearances, appraise projects, enforce environmental norms for approvals and impose penalties on polluters
When: 4 September 2014