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10% hike in DA w.e.f. 1st July 2010.

Union Cabinet on Thursday approved 10 % hike in Dearness Allowance (DA) for Central Government Employees and pensioners considering the high rate of inflatiion in the past six months. DA now will be 45% of the basic pay. The increased 10% DA will be released with effect from 1st July 2010. The Central Staff already get 35% of their basic pay as DA. The proposed increase is in accordance with the formula devised by the Sixth Pay Commission to compensate for price rise.

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