The Indian government has approved a 6 percent hike in dearness allowance in a bid to provide relief from high inflation.
The announcement is expected to provide benefit over 50 lakh central government employees and 38 lakh pensioners.
From in.finance.yahoo.com:
The increased DA, which will be effective from January 1, is provided to government staff and pensioners to compensate them for rising prices.
Presently, the DA is paid at 45 per cent of basic pay.
The increase in DA by 6 per cent would be in accordance with the formula prescribed by the Sixth Pay Commission for central government employees.
The decision will provide direct relief to around 50 lakh employees and 38 lakh pensioners.
The DA is revised twice a year, on January 1 and July 1.
The relief came amid high retail prices, as inflation has been ruling above 9 per cent.
The combined impact of the hike will be Rs 5,715.90 crore per annum.













