The Union Cabinet is set to approve a proposal hiking dearness allowance (DA) to 100 percent from existing 90 percent in its meeting scheduled on Friday, media reports said, a move that would benefit 50 lakh Central government employees and 30 lakh pensioners.
Interestingly, the decision comes ahead of the imposition of the model code of conduct by the Election Commission, which will come into force with the announcement of the schedule for the forthcoming general elections expected in a few days.
It would be the second double digit DA hike after the 10 percent hike in September last year, effective from July 1, 2013. If approved, DA and dearness relief (DR) will be 100 percent of the basic pay. The increase would be effective from January 1, 2014 and will be included in the March salary.
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