M A I N   N E W S

Centre hikes DA by 7%

New Delhi, March 23
The Cabinet has approved a bonanza for Central Government employees with additional 7% increase in dearness allowance with effect from January 1, 2012.

The DA is revised twice every year on basis of change in the consumer price index (CPI). The increase of 7% over the existing rate of 58% of basic pay and pension has been given to compensate for price rise, the government said, adding that the increase was in accordance with the accepted formula based on recommendations of 6th Central Pay Commission. Impact on exchequer on account of DA and dearness relief will be Rs 7474.53 crore per annum and Rs 8720.32 crore in 2012-13. CPI inflation was 8.83% (combined) for February, more than 7.65% in January on account of higher prices of protein-based items and edible oil products. — TNS