Dearness allowance hiked to 51 percent of basic pay

Last Updated: Tue, Mar 22, 2011 07:10 hrs

New Delhi, March 22 (IANS) The union cabinet Tuesday approved a hike of 6 percentage points in dearness allowance as a relief against rising prices, in a move that would benefit an estimated 9 million serving and retired central government employees.

Effective Jan 1 this year, the dearness allowance would stand enhanced to 51 percent of the basic salary from the existing present 45 percent, an official said, soon after the cabinet meeting presided over by Prime Minister Manmohan Singh.

The latest hike -- based on the recommendations of the 6th Pay Commission -- comes over and above the 10 percentage points increase in dearness allowance that was announced in September last year, which was made effective July 1.

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