New Delhi: The Union Cabinet on Wednesday approved a two per cent increase in the Dearness Allowance (DA) and Dearness Relief (DR) for Central government employees with retrospective effect from July 1, 2018. Earlier, all the employees were given a dearness allowance of 7 per cent which has now been hiked to 9 per cent. In March this year, the Union Government had increased the DA from 5 per cent to 7 per cent.
An official government release stated that the Union Cabinet, chaired by Prime Minister Narendra Modi has approved to release an additional instalment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners wef 01.07.2018 representing an increase of 2 % over the existing rate of 7% of the Basic pay/Pension, to compensate for price rise.
Notably, More than 48 lakh government employees and over 60 lakh pensioners will be benefitted from this increase in DA. The increase is in accordance with the accepted formula, which is based on the recommendation of the 7th Central Pay Commission.
Dearness allowance is a cost of living adjustment allowance paid to government employees including pensioners. The DA is adjusted from time to time, according to the inflationary trends in the country and to nitigate its impact on employees.
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Ms Kalinga