DA for govt employees hiked by 6 pct

As a parting gift to the employees, the United Progressive Alliance (UPA) government today announced hike of 6 per cent hike in the Dearness Allowance (DA) for the central government employees. This was decided at the meeting of the Union Cabinet, which was chaired by External affairs Minister Pranab Mukherjee, in the absence of the Prime Minister Manmohan Singh, here today.According to P Chidambaram, Union Home Minister, who briefed the media on the decisions of the meeting, the new DA rates - 22 per cent - would be applicable from January 2009.This move, which is clearly aimed at wooing the employees in view of the coming Lok Sabha election,  is estimated to cost the government Rs 6,020  crore. Chidambaram said the additional cost on this account would be Rs 41 crore for the employees and Rs 1,961 for the pensioners.