Here is good news for the central government employees and its pensioners, dearness allowance of 22.77 percent will be increased to 27.77 percent effect from July 2009 announced the central government on 10.09.2009.
Information and Broadcasting Minister declared the 5% hike after the meeting of the Union Cabinet chaired by Prime Minister Manmohan Singh. She said the cost of hike will be Rs 2,903.55 crore in 2009-10 and Rs 4,355.35 crore in the following years. She skipped the question, why the government was raising the dearness allowance in a situation where inflation was in the negative zone.
“The increase is in accordance with the accepted formula, which is based on the recommendations of the Sixth Central Pay Commission,†she added.