Cabinet Approves 8% hike in Dearness Allowance for Central Government Employees

Business News Network, India Services

New Delhi : 50 lakh Central government employees have reason to smile as the Union Cabinet has approved to hike 8 per cent in Dearness Allowance(DA). The Prime Minister of India chaired the Union Cabinet held on Friday. There will be hike of pensioners as well with effect from January 2010 and they will be getting revised Dearness Relief (DR) .

The government of India will spend additional of Rs Rs 6,969.36 crore and Rs 8,131.20 crore to cover up the hike in dearness allowance and dearness relief of central government employees, respectively. The hike in the DA is declared in perfect time as the food prices are rising and people feeling the pinch of the prices rises which has been making the household budget out of control.