Dearness Allowance (DA) Hiked For Central Government Employees, Pensioners 2 %
The decision was taken at the Cabinet meeting chaired by Prime Minister Narendra Modi in New Delhi. The combined impact to the government exchequer on account of both DA and dearness relief would be Rs 6,112 crore per annum and Rs 4,074 crore in the financial year 2018-19 (for a period of eight months, from July 2018 to February 2019), the government said in a statement.
The increase is in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission.
In March this year, the Union Cabinet had increased dearness allowance (DA) for government employees and pensioners to 7% from 5%, with effect from 1 January 2018. The DA hike was in accordance with a formula based on the recommendations of the 7th Pay Commission for central government employees.
In another Cabinet decision today, the government approved revised cost estimate for setting up of India Post Payments Bank from Rs 800 crore to Rs 1,435 crore.
New Delhi: The Union Cabinet today approved the release of an additional instalment of dearness allowance (DA) for central government employees and dearness relief to pensioners with effect from 1 July, 2018. This move, to compensate for the price rise, will result in an increase of 2% over the existing rate of 7% of the basis pay or pension. About 48.41 lakh central government employees and 62 lakh pensioners will be benefited because of the DA hike.
Today, Modi government has announced good news for lakhs of central government employees and pensioners. At the central cabinet meeting chaired by Prime Minister Narendra Modi today, central government employees' allowance (DA) has been increased by two percent. A decision has been taken at the meeting of the Union Council of Ministers. Proposal was introduced in the Cabinet for dearness allowance. At present, the center employees are getting 7% dearness allowance, which is 9% increase in dearness allowance.
The decision of granting 2% dearness allowance to central employees has been approved in the Cabinet and will be implemented with effect from 1 July, 018. There are more than 48 lakh central employees and 61 lakh pensioners across the country and additional benefit in the dearness allowance will be provided with retrospective effect on all these employees and pensioners.
Increase in dearness allowance will be done under the formula set in the seventh pay scale. By the end of June, the dearness allowance has been implemented by seven percent of the basic salary, and now with the increase of more than two percent, on July 1, 018, central employees and pensioners will get the benefit of 9 percent dearness allowance according to the salary.
Still, in some states government employees were not benefitted from the arrears of various allowances like HRA, as per the recommendation of seventh pay panchayat. However, the Puducherry Government has increased its HRA of staff of its 3,000 employees. Due to this, the Puducherry government will have an additional economic burden of Rs.6 crores per month. Employees living in Puducherry will get an additional benefit of 8% in HRA and employees living in Namah and Karachi.
After approval of the recommendations, the Tripura government has also paved the way for the National Pension Scheme for its staff. Now, the payment of pension to the former employees will be paid flawlessly.
When employees in Bihar are in the process of going on strike, the state government has also constituted a three-member pay committee to look into their demands.
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