Govt hikes DA for its employees by 2 per cent

The Union Cabinet on Wednesday increased the dearness allowance (DA) of 48.41 lakh central government employees and dearness relief for the 62 lakh pensioners by two per cent over the existing 7 per cent of the basic pay or pension.

The Union Cabinet on Wednesday increased the dearness allowance (DA) of 48.41 lakh central government employees and dearness relief for the 62 lakh pensioners by two per cent over the existing 7 per cent of the basic pay or pension.

The increase will cost the exchequer Rs 6,112 crore annually, and Rs 4,074.8 crore this year as it will be effective from July 1 and will be for eight months in the 2018- 2019 financial year. The increase is in accordance with the accepted formula based on the recommendations of the 7th Central Pay Commission.

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