Speed Post News Network
New Delhi : The Union Cabinet chaired by PM Narendra Modi has given its approval to release an additional instalment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners with effect from January 1, 2018, representing an increase of 2% over the existing rate of 5% of the Basic Pay/Pension, to compensate for price rise.
This will benefit about 48.41 lakh Central Government employees and 61.17 lakh pensioners, according to a PIB release. The combined impact on the exchequer on account of both Dearness Allowance and Dearness Relief would be Rs 6,077.72 crore per annum and Rs 7,090.68 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.