Cabinet Approves 6% Hike in Dearness Allowance wef 01 July 2015

The Cabinet on Wednesday approved a proposal to hike dearness allowance by 6 per cent to 119 per cent. The move will benefit over one crore government employees and pensioners.

Earlier in April, the government had hiked dearness allowance by 6 per cent to 113 per cent of the basic pay with effect from January. Dearness allowance is paid as proportion of the basic pay.

According to the current norms, the rate of increase in dearness allowance is an average of 12-month consumer price index-industrial workers from July 1, 2014 to June 30, 2015. It is based on the recommendations of the 6th Pay Commission.

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