Cabinet approves additional 2 percent Dearness Allowance

NP News Network
The Union Cabinet, chaired by the Prime Minister Narendra Modi has approved to release an additional installment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners with effective from July 1, 2018 representing an increase of 2 percent over the existing rate of 7 percent of the Basic Pay or the Pension, to compensate for price rise.

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The combined impact on the exchequer on account of both Dearness Allowance and Dearness Relief would be Rs 6112.20 crore per annum and Rs 4074.80 crore in the financial year 2018-19 for a period of eight 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.

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