Release of additional
installment of dearness allowance to Central Government employees and dearness
relief to Pensioners, due from 1.1.2014
The Union Cabinet today approved the proposal to release an
additional installment of Dearness Allowance (DA) to Central Government
employees and Dearness Relief (DR) to pensioners with effect from 01.01.2014,
in cash, but not before the disbursement of the salary for the month of March
2014 at the rate of 10 percent increase over the existing rate of 90 percent.
Hence, Central Government employees as well as
pensioners are entitled for DA/DR at the rate of 100 percent of the basic with
effect from 01.01.2014. The increase is in accordance with the accepted formula
based on the recommendations of the 6th Central Pay Commission.
The combined impact on the exchequer on
account of both dearness allowance and dearness relief would be Rs. 11074.80
crore per annum and Rs. 12920.60 crore in the financial year 2014-15 ( i.e. for
a period of 14 months from January 2014 to February 2015).
