Cabinet approve Dearness Allowance for Central Govt Employees up to 4%

Cabinet approve the Dearness Allowance for Central Government Employees up to 4%.   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. Now the total percent of dearness allowance is 21 percent now. For read the official notice of this Notification, read below:

Cabinet

Cabinet approves release of an additional instalment of Dearness Allowance and Dearness Relief due from 1.1.2020

13 MAR 2020

The Union Cabinet, chaired by the Prime Minister, Shri Narendra Modi has approved to release an additional instalment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners w.e.f. 01.01.2020.  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.

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.

Source: PIB

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