New Delhi, March 19: In a move which will provide relief to lakhs of Central government employees and pensioners, the government on Friday decided to hike its dearness allowance from the existing 27 per cent to 35 per cent on basic salaries and pensions.
This was decided at the meeting of the Union Cabinet chaired by Prime Minister Manmohan Singh on Friday. It will provide considerable relief to government employees and pensioners as it will compensate them to some extent for the rise in prices of essential commodities.
Information and broadcasting minister Ambika Soni, briefing reporters, explained: “The increase will be eight per cent over the existing rate of 27 per cent of basic pay or pension.”
This is in accordance with the accepted formula based on the recommendations of the Sixth Pay Commission, she said, adding that pensioners would also get dearness relief.

Age Correspondent