Release of additional instalment of Dearness Allowance to Central Government employees and Dearness Relief to Pensioners due from 1.1.2016
The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, has
approved release of an additional instalment of Dearness Allowance (DA)
to Central Government employees and Dearness Relief (DR) to Pensioners
w.e.f. 01.01.2016. This represents an increase of 6 percent over the
existing rate of 119 percent of the Basic Pay/Pension, to compensate for
price rise.
This will benefit about 50 lakh Government employees and 58 lakh pensioners.
The increase is in accordance with the accepted formula, which is based
on the recommendations of the 6th Central Pay Commission (CPC). The
combined impact on the exchequer on account of both Dearness Allowance
and Dearness Relief would be of Rs. 6796.50 crore per annum and
Rs.7929.24 crore respectively, in the financial year 2016-17 (for a
period of 14 months from January, 2016 to February, 2017).
