Central government approves 2% increase in dearness allowance

There is good news for 48.41 lakh Central Government employees and 62.03 lakh pensioners, as the Union Cabinet on Wednesday approved two per cent increase in the dearness allowance (DA). The hike will be implemented with retrospective effect from July. The increase is in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission.

The Union Cabinet increased the allowance from 5 per cent to 7 per cent in March. Now the central government employees will get 9 per cent dearness allowance against the earlier limit of 7 per cent.

The combined impact on the exchequer on account of both Dearness Allowance and Deamess 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).