The Union Cabinet on Thursday approved an increase of dearness allowance (DA) given to Central employees and dearness relief (DR) to pensioners from 28% of the basic pay or pension to 31%.
The Cabinet, at a meeting chaired by Prime Minister Narendra Modi, approved the release of an additional instalment of DA and DR with effect from July 1 to compensate for price rise, a government 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 ₹9,488.70 crore per annum. This will benefit about 47.14 lakh Central government employees and 68.62 lakh pensioners,” a statement read.
