New Delhi: The Centre on Thursday announced a six per cent hike in Dearness Allowance for its employees, raising it to 35 per cent from 29 per cent .
The increase will come into effect retrospectively from January this year. At the same time, the government also announced dearness relief for pensioners.
The Centre also announced that the retirement age for teaching staff of Centrally-funded technical institutes will be raised from 62 to 65 years.
The decisions were taken at meeting of the Union Cabinet on Thursday night.
The hike in DA and dearness relief will entail a total extra expenditure of Rs 3900.43 crore during financial year 2007-08.
The additional financial implications on account of increase in DA for employees will be Rs 2265.12 crore per annum, while for 2007-08, the burden would be Rs 2642.64 crore because of the arrears.
"While the annual extra expenditure would be Rs 3343.20 crore, the burden for 2007-08 would be higher at Rs 3900.43 crore on account of arrears from January," Parliamentary Affairs Minister Priya Ranjan Dasmunsi said after the meeting.
The extra outgo on account of Dearness Relief to pensioners will be Rs 1079.08 crore per annum, while for 2007-08 the extra expenditure would be Rs 1275.78 crore.
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