The cabinet announced on Tuesday that it has approved that the increase of dearness allowance or 3 percent increase in DA, this step will benefit more than 10 million central government employees and pensioners from January 1, 2019.
This decision will result in an additional burden of Rs 9168 crore to the government. Finance Minister Arun Jaitley reports after the cabinet meeting he told that the 3 percent hike would take the rate of DA and inflation DA to 12 percent for all the central employs and pensioners.
This will provide an increment of about 48.41 lakh central government employees and 62.03 lakh pensioners. This increase follows the accepted formula, which is based on the recommendations of the seventh Central Pay Commission.