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Central Government Employees News | July 2010 Dearness allowance to Central Government employees
Release of additional instalment of dearness allowance to Central Government employees and dearness relief to Pensioners due from 1.7.2010 to compensate for price rise
The Union Cabinet today decided to release an additional instalment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners w.e.f. 1.7.2010 representing an increase of 10% over the existing rate of 35% of the Basic Pay/Pension, to compensate for price rise.
The increase is in accordance with the accepted formula, which is based on the recommendations of the 6th Central Pay Commission.
The combined impact on the exchequer on account of both Dearness Allowance and Dearness Relief will be of the order of Rs. 9303.2 crore per annum and Rs. 6202.1 crore in the financial year 2010-2011 (for a period of 8 months from July,2010 to February, 2011).
Dearness Allowance july 2010 | DA From July 2010 | Dearness Allowance for central government employees | Dearness Allowance (DA) for Central Government Employees raised to 10 % from july 2010 – Ministry of Finance
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Dearness Allowance (DA) for Central Government Employees and pensioners raised to 10 % from july 2010 has been approved by Cabinet – Ministry of Finance ahead of the featival season. This Dearness Allowance (DA) has been considered as the high rate of inflation in the past six months as The Central Government Employees/ Staff already get 35% of their basic pay as DA bu placing an extra burden of around Rs 10,000 crore on the exchequer.
The cabinet proposal for Dearness Allowance (DA) aims to extend relief to around 50 lakh employees and 38 lakh pensioners from the soaring prices as till recently the inflation rate was over 10% for many months.
Cabinet Proposal:

• Extend relief to 50 lakh employees and 38 lakh pensioners 10% hike in DA and Dearness.
• Relief making it 45% of basic pay.
• Extra burden on exchequer expected to be Rs 10,000 cr.
• Will push up central government’s wage bill to over Rs 55,000 cr.

Official sources said that the 10% increase, if approved, would be released with effect from July 1 this year. The central staff already get 35% of their basic pay as DA and the proposed increase is in accordance with the formula devised by the Sixth Pay Commission to compensate for price rise.
The proposed hike will further push up the wage bill of the central government, which has more than doubled from Rs 24,000 crore in 2007-08 to over Rs 55,000 crore in 2010-11 after the implementation of the Sixth Pay Commission recommendations.
In March, the government had increased the DA by 8% from the existing 27%. Its impact on the exchequer was Rs 8,131.20 crore in 2010-11. The DA revision is based on the Consumer Price Index (CPI) for industrial workers, which has been showing a steep increase with other price indices.
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