New Delhi: The Union Cabinet under its chairman, Prime Minister Narendra Modi, has given its approval to release an instalment of the Dearness Allowance (DA) to central government employees and Dearness Relief (DR) to pensioners with effect from 1 July of this year. This represents an increase of 2% of the revised basic pay and pension to compensate for price rise.
The 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 will be Rs 5,622.10 crore per annum. In 2016-17 for the period of 8 months (July 2016 – February 2017), it will be Rs 3748.06 crore.
About 50.68 lakh government employees and 54.24 lakh pensioners will be benefited from this hike.