DA from January 2017 increased to 4% – Union Cabinet clears

DA from January 2017 increased to 4% – Union Cabinet clears the increase in Dearness Allowance of 2% with effect from 1st January 2017 for Central Government Employees and Pensioners

Increase in Dearness Allowance of 2% with effect from 1st January 2017 for Central Government Employees and Pensioners

The Union Cabinet chaired by Prime Minister Narendra Modi on Wednesday approved the release of an additional installment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners w.e.f. 01.01.2017.

Increase is by 2 percent over the existing rate of 2 percent of the basic pay/pension to compensate for price rise.

This 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. 5,857.28 crore per annum and Rs.6,833.50 crore in the Financial Year 2017-18 (for a period of 14 months from January, 2017 to February, 2018).

This will benefit about 48.85 lakh Central Government employees and 55.51 lakh pensioners.

Source : Deccan Chronicle