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Union Cabinet hikes dearness allowance for government employees by 5 per cent to 17 per cent; Union minister Prakash Javadekar says it's good news for govt employees

Under the Aykroyd formula, salary hikes will reportedly be performance- as well as inflation-based since it factors in price fluctuations among commodities in the common man's basket

The government may announce these changes in the upcoming full Budget 2019, which will be presented by the new government at the Centre.

\"The revised pay structure will be effective retrospectively from April 1, 2016,\" according to a statement released by the Chief Ministers Office (CMO).

The proposal got the nod from Bihar's cabinet on Monday and will entail an additional burden of Rs 436 crore for the state.

The Union cabinet on Tuesday increased the dearness allowance (DA) by 3 per cent effective from January 1, 2019, legendary haute-couture designer Karl Lagerfeld known for his association with global giant Chanel has died and other news on News Blast

This is the second time in six months that the Centre has released an additional instalment of Dearness Allowance to central government employees.

7th Pay Commission: The move will benefit more than one crore central government employees and pensioners. The decision will cost the exchequer over Rs. 9,000 crore.

The Centre on Wednesday increased dearness allowance and dearness relief to 4 per cent from existing 2 per cent from January 1, 2017, benefiting 48.85 employees and 55.51 lakh pensioners.

The move will benefit around 30 lakh central employees and 50 lakh pensioners including dependents.

Government raised dearness allowance to 100 per cent, from 90 per cent, benefiting its 50 lakh employees and 30 lakh pensioners. This increase in the dearness allowance by the UPA-2 govt comes ahead of the imposition of the model code of conduct by the Election Commission.

The hike will be effective from July 1, 2012 and the annual burden on account of the dearness allowance increase has been estimated at Rs 7,408 crore.

The central government is likely to hike dearness allowance from 65 per cent to 72 per cent, benefiting about 50 lakh of its employees and 30 lakh pensioners, on Friday.

The union cabinet hikes the dearness allowance to 65 per cent of the basic salary from the existing 58 per cent with retrospective effect from January 1 this year.