Janjivan Bureau / New Delhi : After a long time wait good news came out today. Narendra Modi Government approved 2 per cent DA of basic pay to central government employees and Dearness Relief (DR) to pensioners.
A decision to this effect was taken at the meeting of the Union Cabinet, which was chaired by Prime Minister Narendra Modi, the government said in a statement, adding that the increased DA and DR would be effective from July 1, 2018.
With this instalment of increase in DA and DR, the effective rate would now be 9 per cent of basic pay and pension. The DAR/DR is revised every six months to compensate employees against price rise.
“The combined impact on the exchequer on account of both the DA and the DR would be Rs 6,112.20 crore per annum and Rs 4,074.80 crore in the financial year 2018-19 (for a period of eight months from July 2018 to February 2019),” the statement read.
This will benefit about 48.41 lakh Central Government employees and 62.03 lakh pensioners. This increase is in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission, the statement added.
