CABINET APPROVES RELEASE
OF AN INSTALMENT OF DEARNESS ALLOWANCE TO CENTRAL GOVERNMENT EMPLOYEES AND
DEARNESS RELIEF TO PENSIONERS DUE FROM 01.07.2016
The
Union Cabinet under the Chairmanship of Prime Minister Shri Narendra Modi has
given its approval to release an instalment of Dearness Allowance (DA) to
Central Government employees and Dearness Relief (DR) to Pensioners w.e.f.
01.07.2016 representing an increase of 2% of the revised Basic Pay/Pension, to
compensate for price rise. The increase is in accordance with the accepted
formula, which is based on the recommendations of the 7th Central Pay
Commission.
The
combined impact on the exchequer on account of both Dearness Allowance and
Dearness Relief would be Rs. 5622.10 crore per annum and in the Financial Year
2016-17 for the period of 8 months (i.e. from July 2016 to February 2017), it
would be Rs.3748.06 crore. About 50.68 lakh Government employees and 54.24 lakh
pensioners will be benefitted.
