In a bid to provide relief from inflation the government today increased Dearness Allowence(DA) by 6 per cent. This will benefit 50 lakh government employees in addition to 38 lakhs pensioners.
Presently the DA is paid at 45 percent of basic pay. Effective from January 1 this year, the Dearness Allowence would stand enhanced to 51 percent triggering a further change in the allowence structure for instance payment like Conveyance Allowence, Children Education Allowence and Special Compensatory Allowence will also increase by 25 per cent.
The Consumer Price Index (Industrial Workers)which is the basis for revisiting Dearness Allowence was 9.47 percent in December and 9.30 percent in January.
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