The Union Cabinet on Wednesday approved the release of an additional 2% of dearness allowance for Central government employees.
“The Union Cabinet approved the release of 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,” a government release said.
The combined impact on the exchequer on account of both Dearness Allowance and Dearness Relief will be ₹6,112.20 crore per annum and ₹4,074.80 crore in the financial year 2018-19 (for the eight months from July 2018 to February 2019).
“This will benefit about 48.41 lakh Central Government employees and 62.03 lakh pensioners,” the release added.
“This increase is in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission,” it said.
