Central Government Employees Dearness Allowance July 2010 Update

Central Government employees seems to have both hands full with the announcement that Union Cabinet would release an additional installment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners with effect from July 1.

The central government raised dearness allowance by 10 percentage points to 45 per cent of basic pay, benefiting about 88 lakh employees and pensioners. The new DA will be paid to central government employees and pensioners with effect from July 1, 2010, and the burden during the current fiscal has been estimated at Rs. 6,202.1 crore.

The existing rate of DA, which is paid as percentage of basic pay to compensate employees for the rising cost of living, is 35 per cent. This would surely bring the smile on the face of 50 lakh central government employees and about 38 lakh pensioners ahead of the festive season.