The Union Cabinet chaired by Prime MinisterNarendra Modi on Wednesday approved two percent Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners.
This will benefit about 48.41 lakh Central Government employees and 61.17 lakh, pensioners.
The combined impact on the exchequer on account of both Dearness Allowance and Dearness Relief would be Rs.6077.72 crore per annum and Rs.7090.68 crore in the financial year 2018-19.
This increase is in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission.