Prime News, National, New Delhi, August 29:- The Centre on Wednesday approved to release an additional installment of Dearness Allowance (DA) to central government employees and Dearness Relief (DR) to pensioners with effect from July 01 representing an increase of two per cent over the existing rate of seven per cent of the basic pay/pension, to compensate for price rise.
The Union Cabinet meeting was chaired by the Prime Minister Narendra Modi.
The combined impact on the exchequer on account of both Dearness Allowance and Dearness Relief would be Rs 6,112.20 crore per annum and Rs 4,074.80 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.
This increase is in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission. (Inputs: Agencies, NGB)