This will come with effect from 01.01.2013 at the rate of 80 percent over the existing rate of 72 percent.
The DA is usually merged with basic pay when it breaches the 50 per cent cap. This move will help employees to get higher allowances as they are paid as proportion of the basic pay.
Thus, the combined impact on the exchequer on account of both DA and DR would be of the order of Rs.8629.20 crore per annum and Rs. 10067.36 crore in the financial year 2013-14 (that is for a period of 14 months from January, 2013 to February, 2014).