Dearness Allowance

Announcing sops for the Central government employees, the government has announced a six per cent increase of Dearness Allowance. The government has also brought relief for pensioners entailing a total extra expenditure of Rs 3900.43 crore during financial year 2007-08.The decision was taken at a Union Cabinet held yesterday. The Cabinet has decided to hike the DA from the current 29 per cent to 35 per cent. The hike will come into effect retrospectively from January this year.The additional financial implications on account of increase in DA for employees will be Rs 2265.12 crore per annum. For 2007-08 the burden would be Rs 2642.64 crore because of arrears.
The extra outgo on account of Dearness Relief to pensioners will be Rs 1079.08 crore per annum. The extra expenditure for 2007-08 would be Rs 1275.78 crore.