Union Cab approves additional 2 % DA to Central Govt employees

Speed Post News Network

New Delhi : The Union Cabinet, chaired by the Prime Minister Narendra Modi, on August 29, 2018, approved to release an additional instalment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners with effect from July 1, 2018, representing an increase of 2% over the existing rate of 7% of the Basic Pay/Pension, to compensate for price rise.

The combined impact on the exchequer on account of both Dearness Allowance and Dearness Relief would be Rs 6,112.20 crore per annum and Rs 4,074.80 crore respectively in the financial year 2018-19 (for a period of 8 months from July, 2018 to February, 2019). This will benefit about 48.41 lakh Central Government employees and 62.03 lakh pensioners.

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