Cabinet Approves 6% Hike in Dearness Allowance-Release of additional installment of Dearness Allowance to Central Government employees and Dearness Relief to Pensioners due from 1.7.2015 - ALLCGNEWS

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09 September 2015

Cabinet Approves 6% Hike in Dearness Allowance-Release of additional installment of Dearness Allowance to Central Government employees and Dearness Relief to Pensioners due from 1.7.2015

     The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, has approved release of an additional installment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to Pensioners w.e.f. 01.07.2015. This represents an increase of 6 percent over the existing rate of 113 percent of the Basic Pay/Pension, to compensate for price rise. 

    This will benefit about 50 lakh Government employees and 56 lakh pensioners. 

    The increase is in accordance with the accepted formula, which is based on the recommendations of the 6th Central Pay Commission (CPC). The combined impact on the exchequer on account of both Dearness Allowance and Dearness Relief would be in the order of Rs. 6655.14 crore per annum and Rs.4436.76 crore in the financial year 2015-16 (for a period of 8 months from July, 2015 to February, 2016). 

Source : PIB

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