Cabinet approves additional 2 percent Dearness Allowance (DA) for Central Government employees

The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi has approved to release an additional instalment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners w.e.f. 01.07.2018 representing an increase of 2% over the existing rate of 7% of the Basic Pay/Pension, to compensate for price rise.

These increase would lead to an impact on the exchequer on account of both Dearness Allowance and Dearness Relief of Rs.6112.20 crore per annum and Rs.4074.80 crore in the financial year 2018-19 (for a period of 08 months from July, 2018 to February, 2019).

The increase will will impact about 48.41 lakh Central Govt. employees and 62.03 lakh pensioners. The additional 2% Dearness Allowance for Central Govt. employees and Dearness Relief (DR) to pensioners will be w.e.f. 1st July, 2018.

This increase is in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission. 

Source: PIB Release

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