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CG Employees & Pensioners DA Hiked by 6% – The increase is in accordance with the accepted formula, which is based on the recommendations of the Sixth Central Pay Commission, it said.
Central government today announced 6 per cent hike in dearness allowance (DA), taking it to 125 per cent of basic pay, a move that will benefit around 48 lakh central employees and 52 lakh pensioners including dependents on the eve of Holi.
The increase is in accordance with the accepted formula, which is based on the recommendations of the Sixth Central Pay Commission, it said.
The hike, which will cost the exchequer an additional Rs 14,724.74 crore annually, will take effect from January 1, 2016, Telecom Minister Ravi Shankar Prasad told reporters after the meeting of the Union Cabinet which took the decision.
The burden on exchequer would be Rs 6,795.5 crore towards central government employees and Rs 7,929.24 crore towards pensioners during 2016-17, he said.
The DA, which will benefit, 50 lakh central government employees and 58 lakh pensioners, will go up from the existing 119 per cent to 125 per cent.
Dearness allowance is paid as a portion of basic pay of employees to neutralise the impact of inflation. Pensioners get dearness relief.
The central government revises DA twice in a year on the basis of one year average of retail inflation for industrial workers as per a pre-determined formula.
In September last year, DA was increased to 119 per cent from 113 per cent with effect from July 1, 2015.
In April last year, the government had hiked DA by 6 percentage points to 113 per cent of the basic pay with effect from January 1, 2015.
Official Press Release of Union Cabinet on increase in DA from January 2016 for Central Government Employees and Pensioners
Press Information BureauGovernment of IndiaCabinet23-March-2016 16:29 IST
Release of additional instalment of Dearness Allowance to Central Government employees and Dearness Relief to Pensioners due from 1.1.2016The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, has approved release of an additional instalment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to Pensioners w.e.f. 01.01.2016. This represents an increase of 6 percent over the existing rate of 119 percent of the Basic Pay/Pension, to compensate for price rise.This will benefit about 50 lakh Government employees and 58 lakh pensioners.The increase is in accordance with the accepted formula, which is based on the recommendations of the 6th Central Pay Commission (CPC). The combined impact on the exchequer on account of both Dearness Allowance and Dearness Relief would be of Rs. 6796.50 crore per annum and Rs.7929.24 crore respectively, in the financial year 2016-17 (for a period of 14 months from January, 2016 to February, 2017).