Release of additional
installment of Dearness Allowance to Central Government employees and Dearness
Relief to pensioners due from 01.07.2014
The Union Cabinet chaired by
the Prime Minister, Shri Narendra Modi, today gave its approval for the release
of an additional installment of Dearness Allowance (DA) to Central Government
employees and Dearness Relief (DR) to pensioners with effect from 01.07.2014.
This is an increase of seven percent over the existing rate of 100 percent of
the Basic Pay/Pension, to compensate for price rise.
The increase is in accordance with the accepted formula, which is based on 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. 7691 crore per annum and Rs.5127 crore respectively in the financial year 2014-2015 (i.e. for a period of eight months from July, 2014 to February, 2015).
The increase is in accordance with the accepted formula, which is based on 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. 7691 crore per annum and Rs.5127 crore respectively in the financial year 2014-2015 (i.e. for a period of eight months from July, 2014 to February, 2015).
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SH/NT/VK
(Release ID :109329)
PIB
