Union Cabinet gave nod for release of additional installment of DA and DR

The Union Cabinet on 7 April 2015 gave its approval to release an additional installment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners at the rate of six percent increase over the existing rate of 107 percent.

With this decision, Central Government employees as well as pensioners are entitled for DA or DR at the rate of 113 percent of the basic pay with effect from 1 January 2015.

This pay rise will benefit 48 lakh government employees and 55 lakh pensioners.

The increase is in accordance with the accepted formula based on the recommendations of the 6th Central Pay Commission.

The combined impact on the exchequer on account of both DA and DR would be to the tune of 6762.24 crore per annum and 7889.34 crore rupees for a period of 14 months from January 2015 to February 2016.