NEW DELHI: The Union cabinet on Wednesday approved an additional 2 per cent hike in Dearness Allowance (
DA) and Dearness Relief (
DR) for central government employees. The hike will come into effect from July 1, 2018.
"The Union Cabinet, chaired by the Prime Minister
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," an official government release stated.
The increase is in accordance with the accepted formula, which is based on the recommendations of the 7th Central
Pay Commission.
The hike is expected to benefit about 48.41 lakh central government employees and 62.03 lakh pensioners.
The impact on the exchequer on account of both DA and DR would be Rs 6,112.20 crore per annum and Rs 4,074.80 crore in the financial year 2018-19 (8 months from July, 2018 to February, 2019).
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