Ministry of Finance
Cabinet approves release of an additional installment of Dearness Allowance and Dearness Relief due from 1.1.2020
Posted On:
13 MAR 2020 4:57PM by PIB Delhi
The
Union Cabinet, chaired by the Prime Minister, Shri Narendra Modi has
approved to release an additional instalment of Dearness Allowance (DA)
to Central Government employees and Dearness Relief (DR) to pensioners
w.e.f. 01.01.2020. There will be an increase of 4 percent over the
existing rate of 17 percent of the Basic Pay/Pension, to compensate for
price rise.
The
combined impact on the exchequer on account of both Dearness Allowance
and Dearness Relief would be Rs.12,510.04 crore per annum and
Rs.14,595.04 crore in Financial Year 2020-21 (for a period of 14 months
from January, 2020 to February, 2021). It will benefit about 48.34 lakh
Central Government employees and 65.26 lakh pensioners.
The increase is in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission.
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VRRK/AK
(Release ID: 1606285)
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