New Delhi: The cabinet has approved a 7 percent increase in basic salary of government employees and pensioners, Information and Broadcasting Minister Ambika Soni said on Thursday.
The government will pay Rs 4,819 crore in the current financial year ending March 2012 for the hike in salary of federal government employees, she said.
The decision to increase the Dearness Allowance of five million central government employees and Dearness relief for about four million pensioners was taken by the Union Cabinet ahead of the festive season.
The pay hike would be applicable from July 1. The DA for the government employees would increase from 51 percent of the basic salary to 58 percent.
The hike in DA and DR would cost the exchequer annually Rs 7,229 crore, while for the remaining period of the current fiscal the implication would be Rs 4,819 crore, Soni said.
Updated Date: Dec 20, 2014 05:40:09 IST