Thursday, 16 September 2010

Union Cabinet Declared 10% D.A Hike From July 2010

Much awaited D.A declaration has been done today. The Union Cabinet (Thursday - 16th September, 2010) approved 10% hike in Dearness allowance (D.A) for Central Government Employees and pensioners considering the high inflation in the past six months.

At present the D.A is 35% with effect from 01st January 2010. Now the D.A will be 45% of the basic pay. The benefit of this declaration is for around 50 lakh employees and 38 lakh pensioners and they get a relief from the soaring prices due to high inflation rate.

This D.A increase will cost approximately Rs. 9303 crore per annum.


Dearness Allowance increases twice in every year in January and July according to the price index to compensate the inflation. This D.A declaration is important because as per sixth central pay commission, when the D.A overcome 50 % some daily allowances will increase 25% percent. Those allowances are Children Education Allowance, Child Care Allowance, Washing Allowance, Cycle Allowance, Cash Handling Allowance, Conveyance Allowance, and Split Duty Allowance. Some advances like Flood Advance, Festival Advance also will be increased by 25% when D.A exceeds 50%. And the next D.A declaration may overcome this limit as per the present trend.

No doubt this festival season came with a bonanza to central government employees.

Related posts

Expected D.A hike from July 2010

Why D.A (Dearness Allowance) is more awaited than Increment

Allowances Admissible to Central Government Employees.

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