INSUBCONTINENT EXCLUSIVE:
This will benefit about 48.41 lakh Central Government employees and 62.03 lakh pensioners.The Union Cabinet, chaired by Prime Minister
Narendra Modi, approved the release of an additional 2 per cent increase in Dearness Allowance (DA) to central government employees and
Dearness Relief (DR) to pensioners, according to a press release issued by the government
The hike, which will come in effect from July 1, 2018, representing an increase of 2 per cent over the existing rate of 7 per cent of the
The combined impact on the exchequer on account of both Dearness Allowance and Dearess Relief would be Rs.6112.20 crore per annum and
Rs.4074.80 crore in the financial year 2018-19 (for a period of 08 months from July, 2018 to February, 2019).2
This will benefit about 48.41 lakh Central Government employees and 62.03 lakh pensioners.3
This increase is in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission.4
The hike in Dearness Allowance will come in effect from July 1, 2018.5
Dearness allowance and dearness relief are provided to employees and pensioners to neutralise the impact of inflation on their earnings.
