Union Cabinet raised Dearness Allowance (DA) of Central Government Employees to 100%

NEW DELHI: Friday 28^th Feb. 2014 : The Union Cabinet raised Dearness Allowance (DA) to 100% from 90%. This will  benefit 50 lakh Central government employees and 30 lakh pensioners. 

It is also learnt that the Government has also approved the Terms of Reference of the 7^th Pay Commission. Now, it is understood that the 7^th (Seventh) Pay Commission can suggest the merger of 50% Dearness Allowance (DA) with Basic Pay, in its interim report. 

If the DA is merged with Basic Pay,  it can increase the gross salaries of central government employees by around 30%. 

As per official statement released, the Union Cabinet has also approved the proposal to release an additional installment of DA and dearness relief (DR) to pensioners with effect from 1^st  January 1, 2014, in cash.  It will not be disbursed before the disbursement of salary for the month of March 2014 at the rate of 10% increase over the existing rate of 90%.