The Union Government today hiked Dearness Allowance (DA) by 7 per cent, benefiting its 80 lakh employees and pensioners and costing the exchequer an additional Rs 7,408 crore annually.
The hike will be effective from July 1, 2012, and the employees would be entitled for arrears from this date.
The hike in the DA from 65 per cent to 72 per cent will cost the exchequer Rs 4,939 crore for the remaining part of the current financial year. The annual expense on account of the DA increase has been estimated at Rs 7,408 crore, says an official release.
The decision, which was approved by the Union Cabinet, will benefit about 50 lakh employees and 30lakh pensioners.

Within a few days the increase of DA for BSNL workers will be announced.