The Union Cabinet on Friday approved the proposal to release an additional instalment of dearness allowance (DA) to central government employees and dearness relief (DR) to pensioners with effect from July 1,2013.
The money will be disbursed in cash at the rate of 10 per cent increase over the existing rate of 80 per cent.
Thus,central government employees as well as pensioners are entitled to DA/DR at the rate of 90 per cent of the basic.
The increase is in accordance with the accepted formula based on the recommendations of the Sixth Central Pay Commission. The combined impact on the exchequer on account of both DA and DR would be approximately Rs 10879.60 crore per annum and Rs 7253.10 crore in the financial year 2013-14 (that is,for a period of eight months from July,2013 to February,2014).