Union Cabinet approves release of 1 per cent Dearness Allowance to Government employees

The Union Cabinet chaired by the Prime Minister Narendra Modi on 12 September 2017 gave its approval for release of additional 1 per cent Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners with effect from 1 July 2017.

The release of the additional 1 per cent instalment of DA over the existing rate of 4 per cent of the Basic Pay or Pension has been done 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.

With this, the combined impact on the exchequer on account of both Dearness Allowance and Dearness Relief will amount to be Rs 3068.26 crore per annum and Rs 2045.50 crore respectively in the financial year 2017-18.

This additional allowance will benefit about 49.26 lakh Central Government employees and 61.17 lakh pensioners.

Source: PIB