DA for Central Government employees raised by additional 2%

New Delhi: In a major development, the Union Cabinet today approved to release an additional installment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners with effect from July 1, 2018 representing an increase of 2 per cent over the existing rate of 7 per cent 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 6112.20 crore per annum and Rs 4074.80 crore in the financial year 2018-19 (for a period of 8 months from July, 2018 to February, 2019).

This will benefit about 48.41 lakh Central Government employees and 62.03 lakh pensioners, sources said.