The Union Cabinet chaired by the Prime Minister, Shri Narendra Modi, today approved release of an additional installment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners with effect from 01.07.2014. This is an increase of 7% over the existing rate of 100% 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 of the order of approximately Rs 7,691 crore every year and Rs 5,127 crore respectively in the financial year 2014-2015 (i.e. for a period of eight months from July, 2014 to February, 2015).