Cabinet approves six per cent hike in Dearness Allowance:

New Delhi, Mar 22: The Union Cabinet today approved six per cent increase in the Dearness Allowance.

The Cabinet at its meeting presided over by the Prime Minister decided to raise the DA by six per cent over the existing rate of 45 per cent of the basic pay, sources said.

The combined effect of the DA and DA relief will be Rs 5715.90 crore per annum.

Since this DA will now be given next year so the total burden will be Rs 6668.52 crore in the financial year 2011-12(combining the backlog of the previous three months).

--UNI