Ministry of Finance

Cabinet approves release of an additional instalment of Dearness Allowance and Dearness Relief due from 1.1.2020

7th Pay Commission Dearness Allowance and Dearness Relief Rate = 17% + 4% = 21%

The current rate of 17% of the Basic Pay Scale / Basic Pension will be raised by 4%

13 MAR 2020

Latest News for Central Govt Employees Today

The Union Cabinet, chaired by the Prime Minister, Shri Narendra Modi has approved to release an additional instalment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners w.e.f. 01.01.2020.

There will be an increase of 4 percent over the existing rate of 17 percent of the Basic Pay / Pension, to compensate for price rise.

The combined impact on the exchequer on account of both Dearness Allowance and Dearness Relief would be Rs.12,510.04 crore per annum and Rs.14,595.04 crore in Financial Year 2020-21 (for a period of 14 months from January, 2020 to February, 2021). It will benefit about 48.34 lakh Central Government employees and 65.26 lakh pensioners.

The increase is in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission.

PIB

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Latest News for Central Govt Employees Today

Good news for central government employees – today’s Union cabinet approves 4 per cent DA raise with effect from 1.1.2020

Today, the central government increased the dearness allowance (DA) and the dearness relief by 4% to 21%, helping 30 lakh central government employees and 50 lakh retired citizens.

“Release of additional installment of DA is an increase of 4 per cent over the existing rate of 17 per cent of the basic pay/pension, to compensate for price rise,” according to an official statement.

Also check: Expected DA 2020

At its meeting today, the Union Cabinet led by Prime Minister Narendra Modi, approved the introduction of an additional installment of Dearness Allowance for Central Government employees and Dearness Relief for pensions with effect from 01.01.2020 reflecting an increase of 4 percent over the current rate of 17 percent of Basic Pay / Pension to account for the price rise.

According to this Central Government DA statement, with this 4 percent Dearness Allowance Hike, total DA has to be paid at a rate of 21 percent from 1 January 2020. Payment of additional DA for January and February 2020 months will be payable as arrears.

The post 7th Pay Commission – Union Cabinet Approved 4 Percent DA hike from Jan 01,2020 for central government employees appeared first on CENTRAL GOVERNMENT EMPLOYEES NEWS.