New Delhi: The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the release of an additional instalment of Dearness Allowance (DA) and Dearness Relief (DR) for Central Government employees and pensioners, effective from 1 July this year.
The decision entails a three per cent increase over the existing rate of 55% of basic pay and pension, aimed at offsetting the impact of rising prices.
According to the government, the move will benefit around 49.19 lakh employees and 68.72 lakh pensioners across the country. The combined financial burden on the exchequer is estimated at Rs 10,083.96 crore annually.
The hike has been implemented in line with the standard formula prescribed by the 7th Central Pay Commission, which reviews the adjustment of DA and DR periodically to safeguard the purchasing power of government staff and retirees.
