The Union Cabinet today in its meeting, gave its approval to release an additional instalment of Dearness Allowance (DA) to central government employees and Dearness Relief (DR) to pensioners w.e.f. 1.1.2013 representing an increase of 8% over the existing rate of 72% of the Basic Pay/Pension, to compensate for price rise. The increase is in accordance with the accepted formula, which is based on the recommendations of the 6th Central Pay Commission.
Necessary order for increasing Dearness Allowance will be issued by Finance Ministry soon. The resultant arrears amount on account of the increased Dearness Allowance for the month of January , Febraury and March will be paid to central government employees by the respective Ministry/Department after the issuance of the order for granting dearness allowance by Ministry of Finance .