Government raised dearness allowance to 100% from 90%, benefiting its 50 lakh employees and 30 lakh pensioners, reports PTI.
The decision to hike DA for its employees, and to provide dearness relief for pensioners, by 10% to 100% was taken by the Union Cabinet in its meeting.
"The Union Cabinet has approved the proposal to hike Dearness allowance for its employees and dearness relief for its pensioners to 100% in its meeting held here," a source said.
This increase in the dearness allowance by the UPA-2 government comes ahead of the imposition of the model code of conduct by the Election Commission. The code is likely to come into force with the announcement of the schedule for the forthcoming general elections in a week or so.
Also it would be the second double digit DA hike in a row. The government had announced a hike of 10% to 90% in September last year, effective from 1 July 2013.
The new hike in DA would be effective from the 1st January 2014.
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