New Delhi - 12.09.2017 : The Union Cabinet on Tuesday approved a 1% hike in dearness allowance (DA) and dearness relief (DR) to 5%, benefiting 48.85 central government employees and 55.51 lakh pensioners.
“The Union Cabinet chaired by Prime Minister Narendra Modi has approved
release of an additional installment of dearness allowance to central
government employees and dearness relief to pensioner with effect from
July 1, 2017,” an official statement said.
The DA/DR has been hiked by 1 percent over the existing rate of 4
percent of the basic pay/pension to compensate for price rise and it is
in accordance with the accepted formula based on the recommendation of
7th pay commission, the statement said.
The combined impact on the exchequer on account of both DA and DR would
be Rs 3,068.26 crore per annum and Rs 2,045.50 crore in the financial
year 2017-18 (for a period of 8 months from July 2017 to February 2018).
The hike in the DA hike is as per the agreed methodology of taking
average of Consumer Price Index-Industrial Workers for the past 12
months.
