Dearness Allowance hiked by 2% for central government employees

07 Mar 2018 | By Shikha Chaudhry

The Union Cabinet today increased the Dearness Allowance (DA) for its 11 million employees and pensioners to 7 per cent, from 5 per cent, from January 1, 2018.

"The Union Cabinet chaired by PM Modi has given its approval to release an additional instalment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners from January 1, 2018", an official statement said.

In context: Cabinet hikes Dearness Allowance to 7%

07 Mar 2018Dearness Allowance hiked by 2% for central government employees

DetailsWho will it benefit?

The hike will benefit 48.41 lakh central government employees and 61.17 lakh pensioners.

Further, the combined impact on the exchequer on account of both DA and DR would be Rs. 6,077.72 crore per annum, and Rs. 7,090.68 crore in 2018-19 (from January, 2018 to February, 2019).

This increase is in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission.