Cabinet hikes DA of Central Govt employees by 3%

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New Delhi: The Union Cabinet chaired by Prime Minister Narendra Modi has increased the dearness allowance (DA) of central government employees by 3 per cent.

The revised allowance will be effective from January 1, 2019. This will benefit about 48.41 lakh Central Government employees and 62.03 lakh pensioners.

“The Union Cabinet has given its approval to the release of an additional instalment of Dearness Allowance (DA) to Central Government employees, and Dearness Relief (DR) to pensioners w.e.f. 1.1.2019 representing an increase of 3% over the existing rate of 9% of the Basic Pay/Pension, to compensate for price rise,” said a release.

This increase is in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission (CPC). The combined impact on the exchequer on account of both DA and DR would be Rs. 9168.12 crore per annum and Rs. 10696.14 crore in the FY 2019-20 (for a period of 14 months from January 2019 to February, 2020).

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