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Good news! Cabinet approves additional instalment of Dearness Allowance and Dearness Relief

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).

India TV Business Desk India TV Business Desk
New Delhi Updated on: March 14, 2020 12:11 IST
Good news! Cabinet approves additional instalment of Dearness Allowance and Dearness Relief
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Good news! Cabinet approves additional instalment of Dearness Allowance and Dearness Relief 

The Union Cabinet, chaired by the 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 from 1st January 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.

ALSO READ | Good news for Central govt employees, DA hiked by 4 per cent

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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