DA hike: In a good news to Central Government employees and pensioners, the PM Narendra Modi led government has increased the dearness allowance and dearness relief.
In a good news to Central Government employees and pensioners, the PM Narendra Modi led government has increased the dearness allowance and dearness relief. According to a press statement released, Cabinet has approved the release of additional 1% Dearness Allowance to Central Government employees and Dearness Relief to pensioners. It will come into effect from 01.07.2017 (1st July 2017), the statement added.
“The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has given its approval for release of additional 1% Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners. It will be applicable from 01.07.2017,” the PIB statement said.
“The release of the additional instalment of DA represents an increase of 1% over the existing rate of 4% of the Basic Pay/Pension, to compensate for price rise. This increase is in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission,” it added.
Cabinet approves release of additional 1% DA to Central Govt employees & Dearness Relief to pensioners w.e.f1.7.17 https://t.co/nxadWNr3dl
— Ministry of Finance (@FinMinIndia) September 12, 2017
According to the statement, “The combined impact on the exchequer on account of both DA and DR would be Rs.3068.26 crore per annum and Rs.2045.50 crore in the financial year 2017-18 (for a period of 8 months from July, 2017 to February, 2018).”
The decision will benefit about 49.26 lakh Central Government employees and 61.17 lakh pensioners, as per the statement.