About 50 lakh central government employees may get 8 percentage points increase in their dearness allowance (DA), The government on Friday increased the dearness allowance for central government employees and pensioners by eight percentage points to compensate for price rise.
Pensioners may also get the dearness relief, highly placed sources said.
The DA would be revised from 27 per cent to 35 per cent of basic salaries, giving some respite from high inflation.
The increase would be given with retrospective effect from January this year.
The DA revision is based on the consumer price index (CPI) for industrial workers, which has been showing a steep increase along with other indices of the price rise.
The CPI for industrial workers increased to 16.2 per cent in January from 10.4 per cent a year ago.
The combined impact on the exchequer on account of both dearness allowance and dearness relief would be to the tune of Rs 6969.36 crore per annum and Rs 8131.20 crore in the financial year 2010-2011.
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