The Union Cabinet headed by Prime Minister Shri. Narendra Modi , in
the its meeting held today has approved to release an additional
instalment of Dearness Allowance to Central Government employees and
Dearness Relief to pensioners with effect from 01.01.2020 representing
an increase of 4% over the existing rate of 17% of the Basic pay/Pension
to compensate for price rise.
Cabinet Approved 21% Dearness Relief for Central Government Pensioners from 1st January 2020
Ministry of Finance has issued Press release regarding cabinet Approval for dearness relief for central Government pensioners and family pensioners and Dearness Allowance for central government employees with effect from 1.1.2020.The Official Press release of finance Ministry is given below
Ministry of Finance
Cabinet approves release of an additional instalment of Dearness Allowance and Dearness Relief due from 1.1.2020The Union Cabinet, chaired by the Prime Minister, Shri Narendra Modi has approved to release an additional instalment of Dearness
Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners w.e.f. 01.01.2020. There will be an increase of 4 percent over the existing rate of 17 percent of the Basic Pay/Pension, to compensate for price rise.
The combined impact on the exchequer on account of both Dearness Allowance and Dearness Relief would be Rs.12,510.04 crore per annum and Rs.14,595.04 crore in Financial Year 2020-21 (for a period of 14 months from January, 2020 to February, 2021). It will benefit about 48.34 lakh Central Government employees and 65.26 lakh pensioners.
The increase is in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission.
