Cabinet today approved Dearness allowance hike of 7% and consequently, over 50 lakh Central Government Employees and 38 lakh Central Government Pensioners/Family Pensioners will get 58% of their pay in Band/Basic pension as Dearness Allowance with effect from 1.7.2011.
This hike is based on gradual increase of All India Consumer Price Index (Industrial Workers) for the past 12 months preceding July-2011 (viz.., From July-2010 to Jun-2011)
| Month | Jul-10 | Aug-10 | Sep-10 | Oct-10 | Nov-10 | Dec-10 |
|---|---|---|---|---|---|---|
| CPI(IW) | 178 | 178 | 179 | 181 | 182 | 185 |
| Month | Jan-11 | Feb-11 | Mar-11 | Apr-11 | May-11 | Jun-11 |
|---|---|---|---|---|---|---|
| CPI(IW) | 188 | 185 | 185 | 186 | 187 | 189 |
As we predicted DURING MAY 2011 Dearness Allowance with effect from 1st July 2011 has been now raised to 58%.
