Posted
On: 09 OCT 2019 2:39PM by PIB Delhi
The Union Cabinet Chaired by Prime
Minister Narendra Modi today approved to release an additional instalment of
Dearness Allowance (DA) to Central Government employees and Dearness Relief
(DR) to pensioners w.e.f. 01.07.2019 representing an increase of 5% over the
existing rate of 12% 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 Rs. 15909.35
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 February 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 1st January and 1st July.
VRRK/SH/PK
(Release ID: 1587487) Visitor Counter : 341
Source: https://pib.gov.in/PressReleseDetail.aspx?PRID=1587487
