DA increased to 12% – 3% DA increase for Central Government Employees – Cabinet Decision

DA from July 2019

Dearness Allowance for Central Government Employees increased to 12% – Union Cabinet decides to increase DA from January 2019 from 9% to 12 % – Net increase will be 3% – Finance Minister Sri. Arun Jaitley announces Cabinet’s decision

Checkout GConnect’s estimation and calculation for DA from January 2019

DA from January 2019 – 3% increase confirmed based on calculations

Union Cabinet Press Release

The Union Cabinet chaired by Prime Minister Narendra Modi has given its approval to the release of an additional instalment of Dearness Allowance (DA) to Central Government employees, and Dearness Relief (DR) to pensioners w.e.f. 1.1.2019 representing an increase of 3% over the existing rate of 9% of the Basic Pay/Pension, to compensate for price rise.

This increase is in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission (CPC). The combined impact on the exchequer on account of both DA and DR would be Rs. 9168.12 crore per annum and Rs. 10696.14 crore in the FY 2019-20 (for a period of 14 months from January 2019 to February, 2020).This will benefit about 48.41 lakh Central Government employees and 62.03 lakh pensioners.

While briefing the press on various decisions taken by Cabinet on 19.02.2019, Finance Minister announced that Central Government Employees DA from January 2019 will be increased to 12% and that 3% increase in DA from January 2019 would cost around Rs. 9200 Crore to Government during the financial year 2019-20.

Central Government Pensioners would also benefit by this Cabinet’s decision to increase DA from January 2019.

More than 1 crore Central Government Employees and Central Government Pensioners will be receiving this additional installment of Dearness Allowance

Source : PIB