7% DA Hike For Central Govt Employees

The Union Cabinet has given nod to 7% hike in dearness allowance (DA) for the central government employees. This will benefit 30 lakh working employees and 50 lakh pensioners. With this hike, the DA has now increased up to 107% of the basic pay.

“The Union Cabinet chaired by the Prime Minister Narendra Modi today gave its approval for the release of an additional installment of dearness allowance to central government employees and dearness relief (DR) to pensioners with effect from July 1. This is an increase of 7% over the existing rate of 100% of the basic pay/pension, to compensate for price rise,” a government statement said.

The Centre said that this increase is in line with the recommendations of the 6th Central Pay Commission. “The combined impact on the exchequer on account of both dearness allowance and dearness relief would be of the order of approximately Rs 7,691 crore per annum and Rs 5,127 crore respectively in the financial year 2014-2015 (i.e. for a period of eight months from July, 2014 to February, 2015),” it said.