The Union Government has today approved increasing the Dearness allowance by 10% for all Central government employees and pensioners effective from January 2014. The decision was taken to increase and merge the DA from 90% to 100% along with the basic salary.
With this increase, a total of 50 lakh Central government employees in all scales and an additional 30 lakh pensioners will be benefited.
Second hike with 10% increase
This is the second time that the government has taken a decision to increase the D.A. by 10%. Owing to a high inflationary figure, and keeping in mind the elections coming up later during 2014, it was widely expected that the govt. will increase the D.A. by double digits.
D.A. hikes are usually determined by the The Consumer Price Index — which shows the retail inflation for the past 12 months. The retail inflation for the factory workers in the month of December was posted at 9.13%.