New Delhi: The Cabinet on Friday approved an eight per cent increase in the dearness allowance of government employees and pensioners.
"The Cabinet approved an eight per cent increase in the dearness allowance of government employees and dearness relief of pensioners with effect from January 1, 2010," said Ms Ambika Soni, the information and broadcasting minister.
"This is over and above the existing rate of 27 per cent (of basic pay)," she said while briefing reporters after a Cabinet meeting chaired by Prime Minister Dr Manmohan Singh.
"The decision will cost the exchequer Rs 6,969.36 crore annually," Ms Soni said.(IANS)