The Centre today increased dearness allowance for its employees to 119 per cent from 113 per cent, a move that will benefit 50 lakh employees and 56 lakh pensioners.
"Every six months government reviews dearness allowance. This time we have decided to increase DA by six per cent over exiting 113 per cent rate," Finance Minister Arun Jaitley told reporters after Union Cabinet meeting here.
An official statement said the Union Cabinet, chaired by Prime Minister Narendra Modi, has approved release of an additional instalment of Dearness Allowance to central government employees and Dearness Relief to Pensioners from July 1, 2015.This represents an increase of 6 per cent over the existing rate of 113 per cent of the Basic Pay/Pension, to compensate for price rise, it said.
The decision will benefit about 50 lakh government employees and 56 lakh pensioners, it added. The increase is in accordance with the accepted formula, which is based on the recommendations of the 6th Central Pay Commission (CPC), it said.