New Delhi: The Union Cabinet chaired by Prime Minister Narendra Modi today approved release of an additional installment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners, with effect from January 1. It has increased by 2 percent over the existing rate of 2 percent of the basic pay/pension, to compensate for price rise, a statement said.
This increase is in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission. The combined impact on the exchequer on account of both DA and DR would be Rs 5,857.28-crore per annum and Rs 6,833.50-crore in the Financial Year 2017-18 (for a period of 14 months from January, 2017 to February, 2018). This will benefit about 48.85-lakh Central Government employees and 55.51-lakh pensioners, the statement said. (UNI)
