Union Cabinet approves release of additional installment of DA and DR
The Union Cabinet on 7 April 2015 gave its nod to release an additional
installment of Dearness Allowance (DA) to Central Government employees
and Dearness Relief (DR) to pensioners. The approved additional
installment of DA/DR is at the rate of six percent increase over the
existing rate of 107 percent with effect from 1 January 2015. This
decision is going to benefit 48 lakh government employees and 55 lakh
pensioners. Decision in this regard was taken in Union meeting chaired
by the Prime Minister Narendra Modi in accordance with the accepted
formula based on the recommendations of the 6th Central Pay Commission.
With this Central Government employees as well as pensioners are
entitled for DA/DR at the rate of 113 percent of the basic pay with
effect from 1 January 2015. This decision will have combined impact on
the exchequer on account of both DA and DR will be of the order of
6762.24 crore rupees per annum and 7889.34 crore rupees in the Financial
Year 2015-16. FY 2015-16 will be for a period of 14 months from January
2015 to February 2016.
