The Union cabinet will consider a 6% hike in DA for central government employees and pensioners on Thursday. The proposed increase is in line with the hike announced in the last revision of DA. The cabinet had earlier announced an increase of 5% in DA in September last year.
After the current revision, the rate of DA and dearness relief would go up from 35% to about 41%. The decision is also likely to put pressure on state governments to announce a similar hike in DA for their employees, ahead of the festival season. The hike will cost the exchequer an additional Rs 3,500 crore in the current financial year.
