The union cabinet on Tuesday decided to release an additional installment of Dearness Allowance (DA) to central government employees and Dearness Relief (DR) to pensioners, an official release said here.
This will benefit 48 lakh government employees and 55 lakh pensioners.
The decision to release the additional installment with effect from January 1, at the rate of six percent increase over the existing rate of 107 percent, was taken at a cabinet meeting chaired by Prime Minister Narendra Modi.
Hence, central government employees as well as pensioners are entitled for DA/DR at the rate of 113 percent of the basic pay from January 1. The increase is in accordance with the accepted formula based on the recommendations of the Sixth Central Pay Commission.
The combined impact on the exchequer on account of both DA and DR would be of the order of Rs. 6,762.24 crore per annum and Rs.7,889.34 crore in the financial year 2015-16.