The government has announced a five percentage point increase in dearness allowance effective from July for employees of the public sector enterprises that follow the Central Dearness Allowance pattern.
The Department of Public Enterprises has cleared the proposal for enhancing the existing rate of DA from 22 per cent to 27 per cent.
"These rates may be made applicable in the case of CDA (Central Dearness Allowance) employees, whose pay have been revised with effect from January 1, 2006," The DPE said in a circular.
However, only 69 CPSEs out of 242 follow the CDA pattern.
As many as 96 per cent of the total 15 lakh people employed in all Central Public Sector Enterprises are paid the Industrial Dearness Allowance (IDA).