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.



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