Hours before the announcement of Bihar elections and enforcement of model code of conduct, the Union Cabinet has approved 6% DA hike for central government employees. The dearness allowance (DA) has been hiked to 119 per cent from 113 per cent.
The DA hike will take effect from July 1, 2015. Earlier, in April 2015, the government had hiked DA by 6% to 113% of their basic salary with effect from January 2015. DA is paid as proportion of the basic pay.
The DA hike will benefit 48 lakh central government employees and 55 lakh pensioners across India.