Indian Govt Increase Dearness allowance 5%

Dearness allowance (DA) is part of a person’s salary. D.A. is calculated as a percent of the basic salary. This amount is then added to the basic salary along with house rent allowance to get the total salary. Rates vary as per rural/urban areas etc.

The central government Thursday announced a five percent hike in dearness allowance for its employees and pensioners, with retrospective effect from July 1.

Dearness allowance will now be 27.77 percent of the basic pay of government officials and pensioners.

The decision was taken at a meeting of the union cabinet chaired by Prime Minister Manmohan Singh, Information and Broadcasting Minister Ambika Soni told reporters here after the meeting.

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