Government has fulfilled the expectation by clearing the additional Dearness Allowance of 8% over the existing rate of 72 percent with effect from 1st January 2013 for Central Government employees, Central Pensioners and family Pensioners.
This decision was taken by Cabinet on the basis of All India Consumer Price Index (Industrial Workers) for the period from January 2012 to December 2012.
This increase in DA would benefit around 50 lakh employees and 30 lakh pensioners. It is also estimated that the the combined impact on the exchequer on account of both DA and DR would be of the order of Rs.8629.20 crore per annum and Rs. 10067.36 crore in the financial year 2013-14 (that is for a period of 14 months from January, 2013 to February, 2014).
Source: Press Information Bureau