• Investment World
• eWorld
• Brand Line
• Mentor
• Life
• Brand Quest
• The New Manager
• BL Club
• Smartbuy
• Books
• Gallery

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Cross Currency

• Rates
  
  

Shipping

• Ports
  
  

Archives

• Yesterday
• Datewise
• Resources
• In Focus
• In Depth
• Events 2007

Group Sites

• The Hindu
• The Hindu ePaper
• Business Line
• Business Line ePaper
• Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

Our Bureau

New Delhi, Sept. 10 On the heels of the Finance Ministry’s nod for the payment of the second instalment of wage arrears, the Union Cabinet today decided to release an additional instalment of dearness allowance amounting to 5 per cent for Government employees with effect from July 1, 2009.

There will also be a 5 per cent increase in dearness relief for pensioners from this date. The additional instalment will be an increase of 5 per cent over the current rate of 22 per cent of the basic pay/pension.

This move, which would benefit over 8 million Central Government employees and pensioners, would cost the exchequer Rs 2,900 crore this fiscal (from July 2009 to February 2010) and Rs 4,355 crore in the entire financial year.

The additional DA is being released to compensate for the price rise (in the economy), the Information and Broadcasting Minister, Ms Ambika Soni, told presspersons after a Cabinet meeting. The increase is in line with the accepted formula, which is based on the recommendations of the Sixth Central Pay Commission.

The outgo towards additional DA has been factored in as part of the budgetary estimates for 2009-10, official sources said.

More Stories on : Human Resources | Policy | Economy

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Copyright © 2009, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line