Dearness Allowance : Cabinet approves additional DA @ 2% from January 2017.

The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi has
approved release of an additional instalment of Dearness Allowance (DA) to
Central Government employees and Dearness Relief (DR) to pensioners w.e.f.
01.01.2017. It has increased by 2% over the existing rate of 2% of the
Basic Pay/Pension, to compensate for price rise.

Press Information Bureau


Government of India


Cabinet 

 15-March-2017 19:55 IST 

Cabinet approves additional 2% Dearness Allowance / Dearness Relief due
from January, 2017 

 

The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi has
approved release of an additional instalment of Dearness Allowance (DA) to
Central Government employees and Dearness Relief (DR) to pensioners w.e.f.
01.01.2017. It has increased by 2% over the existing rate of 2% 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. 

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