The hike in DA would come in effect from July, from when the central government employees and pensioners would be entitled for DA/DR at the rate of 90 percent of the basic pay, an official statement said. It would cost Rs.10,879.60 crore per annum and Rs.7,253.10 crore in the financial year 2013-14.
The increase is in accordance with the accepted formula based on the recommendations of the Sixth Central Pay Commission, said the statement.