The new DA will be increased to 72% from earlier existing rate of 65% of the basic payor pension. This new pay will be effective from 01.07.2012.
The increase in the pay came after the proposal, which was based on the recommendations of the 6th Central Pay Commission.
In order to fight inflation which is in double digit, increased diesel price this move will be benefit the people.
"The combined impact on the exchequer on account of both Dearness Allowance and Dearness Relief would be of the order of Rs.7408.24 crore per annum and Rs. 4938.78 crore in the financial year 2012-2013 i.e. for a period of 8 months from July, 2012 to February, 2013", press release said.
The Union Cabinet also approved other four proposals related to pensioners from armed forces, which would would cost the exchequer Rs 2,300 crore annually.
The demand of the Defence Forces and Ex-Servicemen Associations is that uniform pension be paid to the Defence Forces personnel retiring in the same rank with the same length of service irrespective of their date of retirement and any future enhancement in the rates of pension be automatically passed on to the past pensioners, press release said.
Dual family pension will be allowed in the present and future cases where the pensioner drew, is drawing or may draw pension for military service as well as for civil employment.
The cabinet also granted family pension to mentally/physically challenged children who drew, are drawing or may draw family pension would continue even after their marriage.