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Union Cabinet nod to additional 2% Dearness Allowance for central government employees

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New Delhi: The Union Cabinet on Wednesday approved an additional two per cent Dearness Allowance (DA) for central government employees and Dearness Relief (DR) to pensioners from January 1, 2018.

An official release said it will benefit about 48.41 lakh central government employees and 61.17 lakh pensioners.

“The Union Cabinet has given its approval to release an additional instalment of Dearness Allowance (DA) to central government employees and Dearness Relief (DR) to pensioners w.e.f. 01.01.2018, representing an increase of two per cent over the existing rate of five per cent of the basic pay/ pension to compensate for price rise,” the release said.


It said the combined impact on the exchequer on account of both DA and DR would be Rs 6,077.72 crore per annum, and Rs 7,090.68 crore in the financial year 2018-19 (for a period of 14 months from January 2018, to February 2019).

This increase is in accordance with the accepted formula, which is based on the recommendations of the Seventh Central Pay Commission.