The cabinet has approved 85 increase in the dearness allowance of government employees and pensioners. "The cabinet has approved an eight per cent increase in the dearness allowance of government employees and dearness relief of pensioners with effect from Jan 1, 2010," Information and Broadcasting Minister Ambika Soni was quoted as saying.
"This is over and above the existing rate of 27% (of basic pay) and the the decision will cost the exchequer Rs69.69bn annually, she added.