New Delhi, March 22
In a major relief to over 50 lakh Central government employees and over 38 lakh pensioners, the government today increased the DA by 6 percentage points, taking it to 51 per cent of the basic pay. The increase will be effective from January 1 this year. The burden on the exchequer will be Rs 6,668.52 crore (combining the backlog of the three months in 2010-11).

The decision would also change the allowance structure. Payments like conveyance allowance and children’s education allowance will also increase by 25 per cent. Reports add that the special compensatory allowance for central government employees posted in remote areas such as the North-East and Jammu & Kashmir would also go up by 25 per cent as a result of the DA crossing 50 per cent.