The Union Cabinet has declared that the Dearness Allowance (DA) of Government employees will be hiked by 7%. This new declaration has been made on Wednesday, 7th March. As per this new update, 11 million Government employees and pensioners will be benefited. Earlier the DA used to be 5% from 1st January; now it has been hiked by another 2%. Also, PM Narendra Modi has agreed to this new 7th pay Commission hike, as per reports. The hike in DA for central government employees will be effectively implemented from this month.
7th Pay Commission: DA Hiked By 7% for Government Employees
“The Union Cabinet chaired by Prime Minister Narendra Modi has given its approval to release an additional instalment of Dearness Allowance (DA) to central government employees and Dearness Relief (DR) to pensioners from 1 January 2018 representing an increase of 2% over the existing rate of 5% of the Basic Pay/Pension, to compensate for price rise,” an official statement said.
As per the announcement, the hike will profit around 48.41 lakh central government employees and 61.17 lakh beneficiaries. It said that the consolidated effect on the exchequer because of both DA and DR would be Rs6,077.72 crore per annum, and Rs7,090.68 crore in 2018-19 (for a time of 14 months from January 2018 to February 2019).