Cabinet approves 4% hike in DA for Central govt employees

New Delhi: In view of Lok Sabha elections in the next 2-3 months, the Union Cabinet chaired by Prime Minister Narendra Modi approved releasing an additional installment of Dearness Allowance (DA) of 4 percent to Central Government employees and Dearness Relief (DR) to pensioners with effect from January 1 this year.

The government has given an increase of 4 percent over the existing rate of 46 percent of the basic pay or pension to compensate for the price rise, an official press release said here.

The combined impact on the exchequer on account of both Dearness Allowance and Dearness Relief would be Rs. 12,868.72 crore per annum. This will benefit about 49.18 lakh Central Government employees and 67.95 lakh pensioners.

This increase is in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission, the statement added.