New Delhi: Union Cabinet, chaired by Prime Minister Narendra Modi, on Thursday approved a 3 per cent hike in Dearness Allowance for Central Government employees and pensioners which will be implemented from July 1.
The hike is over the existing DA rate of 28 per cent of the Basic Pay or Pension, to compensate for the 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 9,488.70 crore per annum. This will benefit about 47.14 lakh Central Government employees and 68.62 lakh pensioners.
Earlier in September, the Department of Expenditure, under the Ministry of Finance, had issued a memorandum stating the retired central government employees will receive cash payment and gratuity.
Prior to this, the Centre had approved an increase in DA and Dearness Relief (DR) given to central government employees and pensioners from 17 per cent to 28 per cent.
The Centre’s DA hike, effective from July 1, had implied that the employees won’t get any arrears on non-revision of DA for the previous period. With agency inputs