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Union Cabinet likely to raise dearness allowance by 8%

 NEW DELHI: The Union Cabinet is expected to grant proposal to raise dearness allowance (DA) of central government employees by 8 per cent on Thursday.

The move to raise DA from 72 per cent to 80 per cent would be helping nearly 50 lakh employees and 30 lakh pensioners of the central government.

Government had earlier hiked DA to 72 per cent in September last year, which came into effect from July 1, 2012.

According to the usual practice, the DA is combined with the basic pay when it breaches the 50 per cent cap. It helps the employees receive higher allowances as those are paid as proportion of the basic pay.