Tuesday, September 25, 2012

DA Arrears from 01 Jul 2012



Government of India hiked DA by 7% for central Government Employees and Pensioners.

DA increased from 65 per cent to 72 per cent

On 25 September 2012, the Central Government hiked the Dearness Allowance (DA) by 7 per cent for its employees and pensioners, and allowed pension proposals for personnel of armed forces.

The hike in DA to 72 per cent of basic pay will be effective from 01 July 2012, and the Dearness Allowance arrears are entitled from this date.

The government increased DA last in the month of March this year from 58 per cent to 65 per cent, with effect from 01 January 2012.

The combined impact on the exchequer on account of both Dearness Allowance and Dearness Relief (in case of pensioners) would be Rs.7,408.24 Crore per annum and Rs. 4,938.78 Crore for the remaining part of the financial year 2012-2013.

The decision, which was approved by the Union Cabinet, will benefit about 50 Lakhs employees and 30 Lakhs pensioners of the central government.

The increase in DA is in accordance with the accepted formula based on the recommendations of the Sixth Central Pay Commission.

Also, ‘The Union Cabinet’ approved four proposals related to pensioners from armed forces. These would cost the exchequer Rs 2,300 Crore annually.

Services personnel, who have retired before January 2006, will now be entitled to pension almost equal to their counterparts who retired afterwards.

The government said that dual family pension would be allowed in present and future cases.

The Cabinet also allowed grant of family pension for ex-servicemen, to mentally and physically challenged children "who drew, are drawing or may draw would continue even after their marriage".

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