Dearness Allowance (DA) Hiked by 7% – Cabinet Decision

DA Hike for July 2011

Central  government has hiked the dearness allowance (DA) by a minimum of 7 per cent, benefiting over 50 lakh central government employees and 38 lakh pensioners.

The hike will be applicable from July 1, 2011.

Dearness allowance is revised twice a year, on January 1 and July 1. The relief comes on the back of high retail prices, as inflation has constantly been above the 9 per cent mark.

Headline inflation, based on movement in wholesale prices, was 9.78 per cent in August, much above the comfort level of 5-6 per cent. Food inflation, too, was close to 9.5 per cent for the week ending September 03.

Now the Current DA rate is 58%.

From PIB

Release of additional installment of Dearness Allowance to Central Government employees and Dearness Relief to pensioners.

The Union Cabinet today approved release of additional installment of Dearness Allowance to Central Government employees and Dearness Relief to pensioners as due from 01.07.2011 at the rate of 7 per cent over the existing rate of 51 per cent.

The total financial implications on account of both Dearness Allowance and Dearness Relief would be Rs.7228.76 crore per annum and Rs.4819.22 crore in the current financial year.