This move will benefit about 49.26 lakh central government employees and 61.17 lakh pensioners.
The government on Tuesday hiked the dearness allowance of central government employees by 1 per cent to 5 per cent. The government also decided to hike dearness relief (DR) by 1 per cent from 4 per cent for pensioners. The decision came after a Union Cabinet meeting chaired by Prime Minister Narendra Modi.
Here are the five key points that you must know about the new DA and DR rate:
1) The new rate will be applicable from July 1.
2) The combined impact on the exchequer on account of both DA and DR would be Rs 3,068.26 crore per annum and Rs 2,045.50 crore in the financial year 2017-18 (for a period of 8 months from July 2017 to February 2018).
3) This move will benefit about 49.26 lakh central government employees and 61.17 lakh pensioners, according to an official statement.
4) "Release of additional installment of DA is an increase of 1 per cent over the existing rate of 4 per cent of the basic pay/pension, to compensate for price rise," it said.
5) The rate of increase is in accordance with the accepted formula based on the Seventh Central Pay Commission recommendations, the statement added. (With Agency Inputs