The Union Cabinet
under the Chairmanship of Prime Minister Shri Narendra Modi has given its
approval to release an instalment of Dearness Allowance (DA) to Central
Government employees and Dearness Relief (DR) to Pensioners w.e.f. 01.07.2016
representing an increase of 2% of the revised Basic Pay/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 Dearness Allowance and
Dearness Relief would be Rs. 5622.10 crore per annum and in the Financial Year
2016-17 for the period of 8 months (i.e. from July 2016 to February 2017), it
would be Rs.3748.06 crore. About 50.68 lakh Government employees and 54.24 lakh
pensioners will be benefited.
PIB: 27.10.2016
