Cabinet approves 2% hike in DA; to benefit 1.1cr employees
The Cabinet today approved additional 2% hike in Dearness Allowance (DA) and Dearness Relief (DR), a move that will benefit about 1.1cr Central Government employees and pensioners, an official release said. The impact on the exchequer on account of both DA and DR would be Rs. 6,112.20cr/annum and Rs. 4,074.80 crore in the financial year 2018-19 (8 months from July 2018 to February 2019).
Hike to be effective from July 1
The hike will come into effect from July 1, 2018, the release said. The decision was taken at the Cabinet meeting chaired by Prime Minister Narendra Modi in New Delhi.
Hike to benefit over 62 lakh pensioners
"The Union Cabinet...has approved to release an additional installment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners w.e.f. July 01, 2018 representing an increase of 2% over the existing rate of 7% of the Basic Pay/Pension, to compensate for price rise," the release said. The hike will benefit about 48.41 lakh central government employees and 62.03 lakh pensioners.
Increase in accordance with accepted formula
As per the release, the increase is in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission.
