Dearness Allowance 90% from July 2013:Central Govt. likely to announce soon.

   Ahead of festival season, Central Government will this month announce a hike in dearness allowance to 90 percent from existing 80 percent, benefiting about 50 lakh central employees and 30 lakh pensioners.

   According to official source, dearness allowance hike will be 10 percent and would be effective from July 1, this year.

   The sources further said the exact amount of dearness allowance, as a proportion of basic pay, works out to over 90 percent after factoring in the revised all India Consumer Price Index for Industrial Workers (CPI-IW) for June.

   According to revised data released on August 30, retail inflation for factory workers for June stood at 11.63 percent, higher than provisional estimate of 11.06 percent for the month released on July 31.

   Sources said that since the revised estimate for the month of June is available, the Finance Ministry would soon prepare a proposal for the purpose for seeking Union Cabinet nod.