Central government approves hike in DA/DR for employees, pensioners

Photo of Indian currency Rupee.

New Delhi: The Union Cabinet today gave a Diwali gift to the central government employees and retired pensioners by approving two percent hike in Dearness Allowance (DA) and dearness relief (DR) that will be effective from July 1st.

A decision in this regards was taken at a cabinet meeting chaired by Prime Minister Narendra Modi which will benefit about 50.68 lakh government employees and 54.24 lakh pensioners.

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According to sources, “The cabinet has given its approval to release an instalment of DA to central government employees and DR to pensioners from July 1, 2016, representing an increase of 2 per cent of the revised basic pay/pension, to compensate for price rise.”

“The increase is in accordance with the accepted formula, based on 7th Central Pay Commission recommendations,” it added.

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The cumulative effect of the hike on the exchequer will be Rs 5,622.10 crore per annum. The amount will be Rs 3,748.06 crore for eight months (July 2016 to February 2017) of the 2016-17 fiscal, the statement said.


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