November 30, 2022 03:41 (IST)
Follow us:
facebook-white sharing button
twitter-white sharing button
instagram-white sharing button
youtube-white sharing button
Assam-Meghalaya border firing not related to their border issues: Himanta Biswa Sarma | Ashok Gehlot, Sachin Pilot appear together in a rare show of unity ahead of Rahul Gandhi's Bharat Jodo Yatra in Rajasthan | IFFI jury distances itself from Nadav Lapid’s remarks on The Kashmir Files, calls them his 'personal opinion' | CPI(M) leader and former West Bengal minister Manab Mukherjee dies of cardiac arrest | Two students from Telangana drown in US, one killed trying to save another
Cabinet approves 5pc DA of govt employees

Cabinet approves 5pc DA of govt employees

India Blooms News Service | @indiablooms | 09 Oct 2019, 10:52 am

Delhi: The Union Cabinet chaired by Prime Minister Narendra Modi on Wednesday approved to release an additional installment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners effective from July 1, 2019 representing an increase of 5 per cent over the existing rate of 12 per cent 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.

The combined impact on the exchequer on account of both Dearness Allowance and Dearness Relief would be Rs15909.35 crore per annum and Rs.10606.20 crore in the financial year 2019-20 (for a period of 08 months from July, 2019 to February, 2020).

This will benefit about 49.93 lakh Central Government employees and 65.26 lakh pensioners.

The additional financial implication on account of this increase in Dearness Allowance is estimated at Rs 8590.20 Crore per year and Rs 5726.80 Crore in the current Financial Year of 2019-20 (for 8 months from July 2019 to Feb 2020).

The additional financial implication on account of the Dearness Relief to pensioners is estimated to be Rs 7319.15 Crore per annum and Rs 4870 Crore in the current FY.

Dear Allowance/Dearness Relief is paid to Central Government employees/pensioners to adjust the cost of living and to protect their basic pay/pension from erosion in the real value.

Dear Allowance/Dearness Relief is revised twice a year from Jan 1 and July 1.