Cabinet approves 5% dearness allowance for central government employees
Press Information Bureau
Government Of India
- The union cabinet has approved to release an additional instalment of Dearness Allowance (DA) to Central Government Employees and Dearness Relief (DR) to pensioners w.e.f 01.07.2019 representing an increase of 5% over the existing rate of 12% 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.15909.35 crore per annum and Rs.10606.20 crore in the financial year 2019-20 (for a period of 08 months from July, 2019 to February,2020). This will benefit about 49,93 lakh Central Government Employees and 65.26 lakh pensioners.
- The additional financial implication on account of this increase in Dearness Allowance is estaimated at Rs 8590.20 Crore per year, and Rs.5726.80 Crore in the Current Financial year of 2019-20 (for 8 Months from July 2019 to February 2020)
- The additional financial implication on account of the Dearness Relief to Pensioners is estimated to be Rs.7319.15 Crore per annum and Rs.4870 Crore in the current FY.
- Dear Allowance/Dearness Relief is paid to Central Government employees/pensioners to adjust the cost of living and to protect their basic pay/pension from erosion in the real value. Dear Allowance/Dearness Relief is revised twice a year from 1st January and 1st July.