AMN /NEW DELHI
Union Cabinet has approved two percent increase in Dearness Allowance (DA) to central government employees. The decision was taken at a cabinet meeting chaired by Prime Minister Narendra Modi in New Delhi today.
The Cabinet gave its nod to release an additional instalment of DA to central government employees and Dearness Relief to pensioners with effect from 1st of January this year to compensate for price rise.
The decision will benefit over 48 lakh Central Government employees and over 61 lakh pensioners.
The combined impact on the exchequer on account of both DA and Dearness Relief would be over 6 thousand 77 crore rupees per annum.
This will benefit about 48.41 lakh Central Government employees and 61.17 lakh pensioners.
The combined impact on the exchequer on account of both Dearness Allowance and Dearness Relief would be Rs.6077.72 crore per annum and Rs.7090.68 crore in the financial year 2018-19 (for a period of 14 months from January, 2018 to February, 2019).
This increase is in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission.