The Union Cabinet today gave its approval to release an additional installment of Dearness Allowance (DA) to central government employees and Dearness Relief (DR) to pensioners w.e.f. 1.1.2013 representing an increase of 8% over the existing rate of 72% of the Basic Pay/Pension, to compensate for price rise.The rate of DA from 1.1.2013 will be 80%. The increase is in accordance with the accepted formula, which is based on the recommendations of the 6th Central Pay Commission.
An increase in DA would have benefitted about 50 lakh employees and 30 lakh pensioners.
The Central Government employees and pensioners will become entitled to higher amount of dearness allowance / relief respectively 1.1.2013.