New Delhi | Jagran Business Desk: The Union Cabinet on Friday approved 4 per cent hike in dearness allowance (DA) to 21 per cent for central government employees, costing the exchequer an additional Rs 14,595 crore. This is over the existing rate of 17 per cent of the basic pay or pension.
Addressing the media Information and Broadcasting Minister Prakash Javadekar said the Cabinet had approved 4 per cent hike in DA to 21 per cent for 48 lakh government employees, 65 lakh pensioners while adding that the government will incur Rs 14,595 crore additional expense on account of this hike.
"Union Cabinet has approved an increase of four per cent dearness allowance to Central Government employees and Dearness Relief to pensioners with effect from 1st January, 2020. This is over the existing rate of 17 per cent of the Basic Pay/Pension," Information and Broadcasting Minister Prakash Javadekar said, as quoted by news agency ANI.
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Javadekar further said that the Seventh Pay Commission was implemented by the Modi government in January 16 andthe salaries were hiked then and the move of increasing the dearness allowance with benefit the central government employees.
Dearness allowance, which is given to central government employees in the month of March and September, is granted with effect from January 1 and July 1. DA/DR is paid to central government employees/pensioners to adjust the cost of living and to protect their basic pay/pension from erosion in the real value.
The government in October last year had approved releasing an additional instalment of dearness allowance (DA) to central government employees and dearness relief (DR) to pensioners -- representing an increase of 5 per cent points over the existing rate of 12 per cent of the basic pay/ pension -- to compensate for price rise.
(With PTI inputs)