Cabinet approves 5% additional DA/DR due July, 2019
Posted On:
09 OCT 2019 2:39PM by PIB Delhi
The
Union Cabinet Chaired by Prime Minister Narendra Modi today approved to
release an additional instalment of Dearness Allowance (DA) to Central
Government employees and Dearness Relief (DR) to pensioners w.e.f.
01.07.2019 representing an increase of 5% over the existing rate of 12%
of the Basic pay/Pension, to compensate for price rise. This increase
is in accordance with the accepted formula, which is based on the
recommendations of the 7th Central Pay Commission.
The
combined impact on the exchequer on account of both Dearness Allowance
and Dearness Relief would be Rs. 15909.35 crore per annum and Rs.
10606.20 crore in the financial year 2019-20 (for a period of 08 months
from July, 2019 to February, 2020). This will benefit about 49.93 lakh
Central Government employees and 65.26 lakh pensioners.
The
additional financial implication on account of this increase in
Dearness Allowance is estimated at Rs 8590.20 Crore per year; and Rs
5726.80 Crore in the current Financial Year of 2019-20 (for 8 months
from July 2019 to February 2020).
The
additional financial implication on account of the Dearness Relief to
pensioners is estimated to be Rs 7319.15 Crore per annum and Rs 4870
Crore in the current FY.
Dear
Allowance/Dearness Relief is paid to Central Government
employees/pensioners to adjust the cost of living and to protect their
basic pay/pension from erosion in the real value. Dear
Allowance/Dearness Relief is revised twice a year from 1st January and 1st July.
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VRRK/SH/PK
(Release ID: 1587487)
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