The Cabinet has decided to increase 10% DA to the central Government Employees and pensioners w.e.f. July 2013, as per the increase in the cost of living for the earlier six months. The Central Government Pensioners also will get the increase. Accordingly the DA will increase from the present 80% to 90%. From January 2013 onwards, the DA was increased by 8%, increasing from the earlier 72% to 80%.
It is estimated that Rs. 10,879 crore will be the additional expenditure for increasing the DA for the 50 lakh employees and 30 lakh pensioners.