Union Cabinet is likely to approve today a proposal to increase dearness allowance to 80 per cent from existing 72 per cent. The move will benefit about 50 lakh employees and 30 lakh pensioners of the central govt. The hike would be effective with a retrospective effect from January 1, 2013 and the employees and pensioners would be entitled for arrears. The govt had hiked DA to 72 per cent in September last year, which had come into effect from July 1, 2012. NewsX spoke to political analyst Suvro Kamal Dutta on the significance of this hike.

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