The Union Cabinet on
Friday raised dearness allowance to 100% from 90%, benefiting 50 lakh
employees and 30 lakh pensioners.
The government has also cleared the
way for merger of 50% DA with basic pay by approving it among the terms of
reference of the 7th Pay Commission. An official said now the commission
can suggest the merger in its interim report.
He added that 50% DA merger with
basic pay will roughly increase the gross salaries of central government
employees by around 30%.
The Cabinet approved the proposal to
release an additional installment of DA and dearness relief (DR) to pensioners
with effect from January 1, 2014, in cash, but not before the disbursement of
the salary for the month of March 2014 at the rate of 10% increase over the
existing rate of 90%, said an official statement.
Central government employees as well
as pensioners are entitled for DA/DR at the rate of 100 per cent of the basic
with effect from January 1, 2014, it said.
The government has estimated that
the combined impact on exchequer on account of both DA and DR would be Rs
11,074.80 crore every year.
Source : Times of India
